i got this reply from a lovely guy on here and im sure he wont mind me sharing it with you...............
To answer your question, yes and no. Yes, you can use any 25sec clip, but no you don't move it in iTunes. You'll create the clip and then add it to your iTunes library. In iTunes right click on it and convert it to AAC. This will create a .m3a file on your computer. Go back to Windows and find this .m3a file.
In the file structure there should be a folder for Ringtones (if you don't have a Ringtones folder just create one). Once you move the clip into your Ringtones folder, change the extension to .m4r (you may need to enable your folder options to see file extensions).
After it's an .m4r file, go back into iTunes and add it to your library. It should automatically be placed into the Ringtones category in iTunes. Make sure it's checked and then sync.
Some people have said that it didn't work, but they forgot to turn on file extensions in Windows so they didn't actually change the file type to .m4r. Hope this helped.
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