Apple is not all bad it seems. Maybe they do listen to us SOMETIMES.
Custom Ringtones with the new iTunes and 1.1.2 Firmware is easy. No software required. No Jailbreak required. No transferring Ringtones to the phone manually.
1. Make your ringtone from any song with
Audacity:
http://audacity.sourceforge.net/ OR your favorite audio editing software.
2. Open it in iTunes, right click on it and click "Convert Selection to AAC". Then, right click the new file that appears and Click "Show in Windows Explorer" I am not sure what this is on a Mac.
3. Rename the file from .m4a to .m4r
4. In iTunes, click File/Add File to Library and choose the .m4r file.
5. It will now show up under "Ringtones" in iTunes.
6. Make sure that your phone is set up to sync Ringtones on the Ringtones Tab of the phone settings.
Sync your phone
Now, go look at your ringtones list. Your Custom ringtones will show up in a list called "Custom" above the Standard ringtone list.
For once, Thank you Apple!
(Originally posted by sidetalker in the Jailbreaking forum, but I thought that this deserved it's own thread. Sidetalker gave credit to jar0167, who's post I did not see. Thanks to the both of them!)