With the upgrade to iTunes 10, Apple has mysteriously killed a significant function that was available in older editions: the ability to make ringtones from purchased music. You can still manually create one (the third method talked about here), but the nifty little tool for making them in app has completely vanished.
Why? We have no idea. Maybe no-one ever used it. Maybe Apple is going to start pushing ringtone sales. I still rely on Audiko for my custom iPhone ringtones, which works well enough, is free, and will work with any MP3 I have, rather than just purchased files.
[via Engadget]

amen. audiko is a godsend. Thanks youusss audiko!
anyway, i think itunes is revamping the entire ringtone process. so expect something new. my 2 cents**