You can make songs from tour iPod library portion with an app Called ringtone designer on your phone. It is way stripped down and you still have to sync your phone to your computer , but for free it is great once you get the hang of it. Hth.
Ok. The ringtones are under 30 seconds. When I got into ITunes on the Ringtones tab, I have 3 options: Sync Ringtones, All Ringtones or Selected Ringtones. (I have all ringtones checked) If I click on Sync Ringtones I get a popup saying all the ringtones on my phone will be replaced with the ringtones from my Itunes library. If I click ok on that popup, nothing happens. If I click apply down on the bottom right, I get a popup that says my IPhone is synced with another Itunes library????? and asks if I want to erase this Iphone and sync with this Itunes library. None of this makes any sense.