Ambrosia Software has released an updated version of its software which enable iPhone users to use custom ringtones from their existing music collection.
iToner 1.0.3 supports iPhone OS 1.1.1, and delivers a few other bug fixes and improvements.
iToner lets users transfer their own MP3 or AAC audio files to their iPhone to use as custom ringtones, without demanding users pay twice for music they already own.
Ringtones can be installed using drag & drop through the iToner interface, and synced to act as ringtones through a click on the sync button.
The update is free to all registered users. A free trial version of the $15 software is available from the developer's website.