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You will loose all your ringtones from your iPhone once you update.
 
Skim through this thread. People have shared their experience that itoner does not brick the phone it just deletes the ringtones.
 
Lost a custom ringtone synched via iToner here... and trying to restore via iToner 1.0.2 didn't work.

C'mon, Ambrosia!
 
You must have the immaculate Iphone. IToner 1.02 no longer works and your ringtones will not be listed on the iphone.

He's not the only one reporting this. A few others have said their iToner ringtones survived the update, but if you try to sync them again, they are lost.
 
Would it be easier to simply replace the soundfiles on a few of apple's built-in ringtones with our own? So that when you choose the "Duck" ringtone, it really plays your custom sound that is named Duck.m4r?
 
It appears that the 1.1.1 update either deletes the "main ringtone" (the one that plays when you get an incoming call) or will delete it when you go to look at it in Settings.

However, it appears that ringtones assigned to contacts remain intact, at least until you edit them.

A forum member running iTunes 7.4.0 may have found a workaround. It involves first sending ringtones with a .m4r file extension to your iPhone via iTunes, though they will not play. You then upload the ringtones a second time, now with a .m4a file extension, using a program like iToner (they used MakeiPhoneRingtones). Apparently, having both file extensions on the iPhone and the Mac seems to make it work.

Mind you, I have not tried it myself (though I am considering it) so no guarantees. :)
 
Just an FYI that with a non-modified/hacked iPhone, when I went to 1.1.1. under iTunes 7.4.1. all my custom, non-iTunes ringtones survived the update and subsequent syncs. I started a new thread with more specifics.
 
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