Create Free iPhone Ringtones Using Only iTunes

Apple added iPhone ringtones to iTunes late last year, but only if you purchased them. After struggling against users for some time, Apple finally started allowing non-DRM'd ringtones in iTunes. This decision spawned quite a few solutions for creating ringtones from songs that you already have. One of the lesser known methods is using iTunes itself.
The method is a bit tedious the first time through, but CNET's Bryan Thomas has come to the rescue with this nice step-by-step video.
There are a few things to remember when creating ringtones in this way. First of all, any tracks that you bought from iTunes with DRM on them will not work. If you purchased iTunes plus songs, then you should be fine. Additionally, if your ringtone is more than 40 seconds long, iTunes won't accept it.
If you need any help, be sure to ask in the comments below!
[via TUAW]

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I like how they take a stock version of iTunes to make the custom ringtone with no additional software necessary.
Problems creating ringtone
Ringtones Using Windows Vista
Correction
I figured it out
ringtones still do not appear?
I have iTunes version 8.0.1.11
Something I've wanted to know how to do since buying the iPhone! Love it.
By the way, my guide will work with DRM songs as well. I give you the simple process of how to rip an iTunes song to an unprotected state.
The best tip so far.....
No "Create ACC Version" option
No "Create ACC Version" option - Problem solved!
You just have to make sure your iTunes “Import Settings” are set to “AAC” or “Apple Lossless” and not “MP3?
I found the answer here:
http://www.intomobile.com/2008/10/07...-itunes-8.html
I also had an idea about the improvments to the forum section. and i thought you should have a "tip of the day"
Works great!
"When you insert a CD" and next to that a "Import Settings" button click that and change "import using" to: AAC Encoder keep the setting to at least 128kbs.. Click OK and you're done...
Now when you right click on a song you'll have the Create AAC Version option...
http://www.efksoft.com/products/tone...hone/index.htm here is the site