iTunes now has the available ringtones for the Apple iPhone turned on where users can choose from over 500,000 tracks that bear a special “ringtone” symbol next to them and make their own custom ringtone. The interface allows users to choose the section of the song they want and add some “mix”, such as looping, fading and selecting the section of the song.

All this comes for just $1.98 for each $0.99 song because remember, owning the track alone isn’t quite enough, you must pay for it again to use it as a ringtone. Happy Tuesday.

Steve Jobs and Apple announced today that they will have a new version of iTunes which will be released tonight that supports ringtones for the iPhone.

The new version of iTunes will have a little “bell” icon next to the songs that can be created into a ringtone (about 500,000 initially) and will let you select your own, up to 30 second excerpt from the song to create your ringtone.

It looks like some folks have found a way to add custom ringtones to your iPhone by following some steps and using a couple programs called jailbreak and iPhoneInterface. Currently the steps only work for those that are using Intel Mac’s but from the description it probably won’t be long until someone makes an interface to broaden the reach.

The instructions are listed over at HackiPhone and involves a lengthy 23 step process. The steps involve backing up and restoring your iPhone from iTunes and they have a few warnings before you start that …