Creating your own ringtone of 40 seconds or less from your iTunes library is a great way to save cash on your iTunes account and still have tones that no one else has. With these steps you can do this quickly and easily, and you’ll only need the help of a couple free third-party Mac programs such as Audacity and MakeiPhoneRingtone to make it work.

Ambrosia Software, Inc. has announced the release of iToner 1.0.7. This update of the highly popular iPhone custom ringtone transfer tool offers support for iPhone OS 1.1.4, along with other bug fixes and improvements. Exempt from per-ringtone fees, iToner lets you easily transfer your own MP3, AAC, WAVE, and AIFF audio files to your iPhone, and enjoy them as custom ringtones. Simply drag and drop your favorite audio files onto the elegant and familiar interface, and click the Sync button. Your custom ringtones are instantly accessible from your iPhone.

I’ve been using iToner for some time now, and have found that the Super Mario Brothers Underworld Theme is a pretty decent ringtone. Or, if you’re the type who forgets to shut off his ringtone, using the sound of chewing popcorn while in a movie theater or shouting an “Amen!” while in church can spare you some embarrassment. And while each update to the iPhone OS seems to break iToner, Ambrosia tends to be very quick with the updates.

More on the update after the break.