ringtone and sms tones?

No, not at this time. Your only choices are the ones preloaded on the iPhone. Unfortunate, because I'd love to change my SMS tone too.

You cannot for SMS tones.

As for ringtones, YES:

This is one of the most asked and answered question on these forums. You can do a forum search and find numerous answers, ideas and opinions.

http://theappleblog.com/2008/10/30/tutorial-how-to-create-iphone-ringtones-in-ga rageband/

http://www.ehow.com/how2160460custom-iphone-ringtones-free.html

http://audiko.net/


http://cnettv.cnet.com/2001-1_53-50003920.html

http://uk.youtube.com/watch?annotationid=annotation484073&feature=iv&v=0OEqyKbHDRE

http://cybernetnews.com/2008/08/21/cybernotes-create-free-iphone-ringtones-using -itunes-in-windows/

Believe it or not, it is indeed true.