Erica Sadun over at the Unofficial Apple Weblog has created a native app called Song Sender. To install it you need to have the Instller.app on your iPhone and download the file. It has 3 choices.
Now you can set any song in your iPod as your ringtone. And dont forget that you can set different songs for different contacts as well. Read more here
Update: Tip on how to change any song to a ringtone
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is this supported by 2.2 3g iphone?Posted on May 9th, 2009 at 11:19 am by millionaire skater
hell no, last time this app was poppin was 1.1.4Posted on December 6th, 2009 at 7:32 pm by emet
cant wait till they make a new one
SongPosted on December 18th, 2010 at 3:17 pm by David
Or you can use free app GeoRing to instantly turn any any song in your iTunes library into ringtone with just a few taps. Unlike other ringtone-making apps, GeoRing doesn’t require iTunes syncing, which means your phone can ring with any song right away. Plus, create a Ringtone Playlist of your favorite songs and shuffle your ringtones to hear a new song every time. No free app makes ringing so much fun. You can find GeoRing in the App Store.Posted on February 16th, 2011 at 9:38 am by Johnny Ixe