I recently reported that iTunes 7.4 killed custom ringtones installed by Ambrosia Software’s $15 iToner. Thanks to quick work by the Ambrosia team, those ringtones are dead no longer.
Just-released iToner 1.0.1 includes these changes:
Compatibility with iTunes 7.4, supports file dragging from iTunes, improved playlist handling, and other bug fixes and enhancements.
Unlike the ringtone installation technique described by my colleague, Dan Moren, iToner works with both AAC and MP3 files.