You clearly have a defective iPad. Take it back to the Apple Store, the salesperson should exchange no questions asked.....
Hey be gentle guys. Clearly the answer is to buy AutoRingtone to create custom text to speech ringtones!
Just kidding... But you'd be surprised how many iPod touch owners ask about ringtones using our app. The iPad and iPod touch are not phones... So no ring to change. Of course, the alarm clock can use ringtones as alerts so its not that odd a question. But no alarm clock in the iPad...
Maybe someday ringtones will be available on all devices, for alerts for alarm clock, email, SMS, etc.