In addition it was announced in the keynote yesterday which can be viewed online with Quicktime on your computer or the iPhone at:
http://www.apple.com/quicktime/qtv/keynote/
Oddly it was supposed to functional with the 7.4 download, but I plugged in my phone and there is a ringtone manager in the download manager, but iTunes isn't showing the ringtone option yet. Also, a bunch of blogs are saying it's finally arrived, but it hasn't arrived in my upgrade.
Does anyone have this working?
No - it is in your update - but it will not be enabled until sometime next week. When it is, you will see the ringtone appear next to the songs in the Apple Store catalog, and those songs that you have purchased on your own iTUNES music library that are "ring-tonable" (not all of them will be)
iTunes 7.4 is the software required for ringtones, but as it was included in the press event, and in the press release, the ringtones won't be available on the iTunes Store until the following week. This similiar to how you could download iTunes 7.3 on June 28, and be ready for the iPhone when it became available on June 29.