Sorry about starting a new thread, but we have so much stuff going back and forth, I wanted to give my experience. I just updated my iPhone to 1.1.1. I have iTunes 7.4.1 under OS X. My phone has not been unlocked nor has it ever had any third-party applications or installers used on it. My ringtones were added via iTunes using the ".m4a" trick. So they show up on iTunes under the Ringtones tab. Upon completing the update and re-activation, I checked my default ringtone and it says it is still the same ("Beautiful Story" by Marina Inoue). Also, all the custom ringtones assigned to my Contacts appear as normal. My parents are visiting, so I used their phone to call mine and the proper ringtones played. I don't have a "generic" phone number I can use to call to test my default ringtone, but I am guessing it works. iTunes showed all my custom ringtones in the library and as available for syncing. I then did a new sync and all my ringtones remain intact and the ones assigned to my contacts play. iTunes continues to show all my custom ringtones in the library and as available for syncing. I have not tried to change my default ringtone or any of the ringtones assigned to my Contacts. One forum member noted when he did with his default ringtone, it disappeared. So the iPhone might still be pointing to the old ringtones, but once you try and change them, it updates it's dataset, identifies the custom ringtones as "invalid", and promptly inactivates them. I have also not tried to add any new ringtones. To be honest, I'm gun-shy to play with it any more, even though forum member stonedgrace appears to have identified a multi-step workaround to get ringtones back on a 1.1.1 iPhone under at least iTunes 7.4.0 on OS X. But it does look that if you have a "virgin" iPhone with iTunes 7.4.0 or 7.4.1, your non-iTunes ringtones will survive the update to 1.1.1.