August 31, 2010 
SoSly 
UnlimTones has been available in cydia for quite a while, it allows you to download iphone ringtones directly from audiko.net, a popular site for uploading your own music and making your own ringtones.
A couple of days ago this great app got a major upgrade, it now lets you create ringtones directly on your iphone using your ipod music library. The app has had this feature for quite sometime now but the latest update removes the ffmpeg dependency and runs a lot smoother. To get started:
You have to be jailbroken, sorry to those who aren’t. Open up cydia, search and install UnlimTones. Now go on and enjoy making ringtones from your music library.
Remember to use the plus or minus buttons to put the timer exactly where you want and get that perfect ringtone. Take note that making a ringtone using this app puts it in the default apple ringtones list so you have to look for your ringtone there and not under the custom ringtones list synced with itunes.
To those with older iphone models be patient as making a ringtone may take a while to finish. Overall what we’ve all been waiting for has never been any easier. The ads popping up everywhere within the app are a little annoying but its ok as we can finally make ringtones whenever, wherever and however we want.
Tags: 
Whoa I'm not crazy about ringtones but my girlfriend def is and she just asked me about something like this
glad to see this helped someone.
That's great! I'll try this app now
cheers
that a bada** song the one in the pic
just tried the repo download, but i think it's the old one. no sign of the new create your own feature.
Sweet found thus link via engadgets post on ringtones