Check out Mobile17.com, where you can turn any MP3 file into a ringtone for your cell phone--for free. SmartMoney magazine mentioned it in the February issue, also noting that the service can be slow if many people are using the site at that time. However, making a donation to the company will send your ringtone conversion to the top of the list.
I don't know about the legal issues here, but remembering that people used to record all kinds of messages for their answering machines, I guess ringtones are the next level in phone personalization.
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