iPhoneRingToneMaker lets you create your own custom ringtones for your iPhone using the music from your music library. Features: Easy and intuitive user interface; Automatically transfers your custom ringtones into your iPhone or iTunes; MP3, WAV, OGG support; Fade In and Fade Out your ringtones; Add sound effects to your ringtones; Create ringtones with accuracy up to a hundredth of a second; and Use as your MP3 alarm clock. Version 2.5.1 improves syncing of ringtones with iTunes.
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http://download.cnet.com/iPhoneRingToneMaker/3000-2169_4-10720152.html?tag=mncol
