Ambrosia Software has updated iToner (http://www.ambrosiasw.com/utilities/itoner/), an utility for Mac OS X that lets iPhone users create and install custom ringtones on the Apple communications device, to version 2.0.7. This update addresses compatibility issues with iTunes 10.1 and iOS 4.2, as well as minor changes to improve the iToner user experience and reliability.

iToner allows you to assign different ringtones for your different contacts. With iToner, you can now “have a Barry White ringtone for when your girlfriend calls, Frank Zappa for when your college buddies ring you up, or the theme from “Jaws” for when your boss is calling,” according to the folks at Ambrosia.

iToner is Universal Binary so runs natively on both PowerPC and Intel Macs. It works with Mac OS X 10.4.11 or later. iToner costs US$15, though version 2.0.7 is a free update for registered users.