Last week Steve Jobs announed a bevy of new/revamped iPods. Additionally he announced ringtones for the iPhone. Through iTunes you can (re)buy a song on iTunes for $0.99 (in addition to the original purchase price) and custom select up to 30 seconds to make into a ring tone. Thanks for nothing Steve....
There are already several ways to get ringtones on your iPhone at no additional cost. iRingtoner is one app with instructions on modmyiPhone.com.
Immediately after the announcement of ringtones baked-in to iTunes, the hackers have unraveled how to get free ringtones on your iPhone. Its hardly a hack and more of a procedure. Ars technica has the scoop on the file rename hack for ringtones.