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Garageband Now Makes Custom Ringtones
Apple has quietly upgraded Garageband adding a new feature: the ability to make your own custom ringtones from any audio or music file on your system. They even added a little "Send ringtone to iTunes" so you can add your custom ringtone to your iPhone.

Its very easy to do. Drag any song or audio file from iTunes into Garageband. It appears as a new sound track. Select the portion of song you want as a ringtone, as much as 40 seconds worth (Garageband will alert you if you exceed that amount and allow you to readjust the length yourself or will automatically adjust it for you). Once you have your portion of the sound file tagged go up to the Share menu and select the new feature called "Send Ringtone To iTunes". WaaLAA! You now have a custom ringtone from a song or sound file you may have downloaded via P2P! Thank you Apple!