? regarding purchased music/ringtones

This is a very complicated answer as to the reasoning, so I will just give you the short version. If you want the full answer, run a google search.

You must buy the song from iTunes then buy the ringtone. It will cost you $1.98 when its all said and done.

Wrong. You will be purchasing the rights to listen to the song once and the rights to use it as a ringtone once. Copyright law treats them differently.

Like I said, run a google search if you want the reasoning. Regardless, this is the way it works.

If the song in the album you purchased has a bell icon showing next to it in your library (no the itunes store), then it is available to make a ring tone out of.
Double click on the bell and an alert will come up and might have a buy button on it.
Put in your password and click buy. Then the ringtone maker will appear at the bottom of itunes.
Once you choose the section of the song you want for a ringtone, there is another buy button on the bottom right of the ringtone maker that will allow you to purchase the ringtone.

If you do not see the column for bell icons in your itunes library, then at the top of itunes click on view and choose view options. Then put a check in the box for ringtones and click ok.
A message should come up asking if you want itunes to see which purchased content in your itunes library is available for ringtones.

Hope this helps.

SoCalSkippy,

You will also find some good information about making/purchasing ringtones here:
http://docs.info.apple.com/article.html?artnum=306374

Hope this helps,
Jennifer B.