Today I decided that it was probably time to change from my Peanuts Christmas music ringtone on my iPhone. I didn't really want to spend 99 cents or whatever on a new ringtone and also didn't really want to use a standard one. So, I found an awesome video that shows you how to create your own ringtone using songs from your iTunes playlist. I tried it out and it worked great for me! Check it out:
A comment that another viewer made that was helpful is: "who ever follows the instructions & then can’t see it in their iphone Just go to the ringtones tab and select your tones manually & un-check , then re-check them and then sync again. Then it will show up. Other than that, Very easy just follow video. Does work Perfect on the newest version of itunes."
Here is the page link. There are many other comments and suggestions there if you are having any trouble with this.