Ambrosia Software on Thursday released an update for its iPhone ringtone-maker, iToner.

[ad#Google Adsense 300×250 in story]According to Ambrosia, iToner 2.0.7 adds iTunes 10.1 and iOS 4.2 compatibility, making it compatible with Apple’s forthcoming mobile operating system release. The iToner update also contains other minor changes and enhancements.

iToner runs on your Mac and allows you to use any audio file as a ringtone. The big plus with iToner is that it will sync with your iPhone without having to jailbreak the device. Of course, since you are using your own music, you don’t have to pay ringtone fees either.

iToner 2.0.7 is a free update for existing users. For new users, the application costs $15.