Apple doesn’t offer iPhone ringtones in the iTunes Store - yet. Until then, you can create your own custom ringtones from MP3s with help from iFuntastic, an iPhone app that you install on your Intel Mac (PowerPC Macs aren’t yet supported) and that “talks” to the iPhone when you have it docked. iFuntastic is regularly updated with open-source code from a grassroots community of busy developers. Just remember: Any modifications using iFuntastic (or any other hacks) will disappear when you install firmware updates from Apple.

Using iFuntastic to add custom ringtones from your own sound files is a cinch - no coding required. We’re also including additional info from the Unofficial Apple Weblog (TUAW), which put on its site the steps for creating custom ringtones using song previews from the iTunes Store.

1. Pick Your Tunes in iTunes

In iTunes, create a new playlist and name it whatever you like. Drag the previews of whatever songs you want to use as ringtones from the iTunes Store into this playlist - they will retain the “Add Song” button and price info within the playlist. Select the playlist in the source pane and right-click (or Control-click) and select Export Song List. Save the playlist to your Desktop as a txt file by selecting Plain Text next to Format.

Easy as pie, so far.

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2. Download the Sound Files

Using Excel or TextEdit, open the playlist file. Locate the URL for the first file (scroll way over to the right if viewing in Excel; look for the last column, labeled “Location”). Copy the URL (select it and press Command-C). Now launch Safari, open the Downloads window by choosing Windows > Downloads, and paste the URL into the first open field. (TUAW blogger Erica Sadun points out here that your Mac must be authorized for your iTunes account for this to work.) Rename each file with a recognizable name (leave the .m4p extension alone).

After downloading, test each clip by playing it in QuickTime to ensure it transferred properly.

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3. Add 'Em to the iPhone

Download iFuntastic (visit www.iphonealley.com and search for iFuntastic to get the latest build). Double-click the zipped file, install iFuntastic, then navigate to your /Applications folder and launch it. Click Prepare, dock your iPhone to your Mac, then click Jailbreak. Follow the onscreen instructions. Click the Ringtones button. Drag your ringtones from your Desktop to the iFuntastic window, under “Ringtones on Disk,” and click the circle next to each so it’s a green plus-sign. Click Update iPhone > Finish > Jail, and follow the onscreen prompts.

About a minute later, we have a free custom ringtone on our iPhone.