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camper88
You can do all this for free on Apple computers; there's no need to pay any one anything.
Just use garageband to create a short clip (ten to forty seconds, say), and then export it (under "share" tab) as a ringtone into iTunes.
Next time you synch, change your ringtone settings to include your new entry and it'll show up on your phone.
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UnionHall
Try Phonezoo.com You can upload any song you want and select any portion to use as your ringtone, up to 30 seconds.