Leave it to the power of the Internet. In browsing this forum, I found one solution that actually did work:
1. Take any song in iTunes and if you don't want to mess with the timing, right click and choose "convert selection to aac" and a new version of the song will appear just below the old one.
2. Right click the song, select Get Info, and go under "Options" and "Start Time" as well as "End Time" and pick which part of the song that you want to make into a ringtone. (It seems the general consensus with this is under 30 sec.)
3. Once you've selected what part of the song you want, click OK. After this you need to again "convert selection to aac" for the new version of your shortened song.
4. With the new clip, right click and select "Show in Windows Explorer."
5. Once the file is shown in Windows, rename the file from ".m4a" to ".m4r". (It was stated above how to enable windows to show file extensions.)
6. Once renamed, double-click on the file and the new ringtone will beging to play in iTunes and you are ready to sync and enjoy your new tone.
Yup, sure enough, worked like a charm. I'm free of The Man's restrictions. Um, at least until the SDK comes out...