FOR PEOPLE WHO ARE HAVING TROUBLE GETTING RINGTONES - "TONES" SYNCHRONIZING TO IPHONE 5, THIS WAY MIGHT BE HELPFUL..!!
I tried almost for a day and figured out it was quite easy.. So here I go..
Do not connect your Iphone 5 yet..
Use itunes or any other software to convert your .mp3 to .m4r (Using itunes >11 you can add the file (Ctr+) to select multiple files to library. Once it shows up in the MUSIC, rt click and get info - to enter all the information if not actually present. Now go to options.. and limit to 30sec. Now rt click on the same file and creat an AAC version. Now rt click on the AAC version new file - Show in Windows Explorer. In that window change the extension to .m4r from .m4a. If using Win 7 or 8, hit ALT and go to tools to uncheck for hide folder extensions. This way you can actually change the extension of the .m4a file. Keep this folder open.
Now comes the actual trick. Copy all the .m4r files to a separate folder in desktop or wherever you wish.
Now delete all the MUSIC files including mp3 and other extension music files (You can sync your music files later and dont have to worry about that as far as you have a copy of these in a different folder).
Now make sure you get the tones folder from the preferences as people have mentioned before. Also in summary-sync selected file and folders
Connect your Iphone 5 by USB and open itunes-rt click-run as administrator
Once it opens up, it should have the TONES folder under your Iphone. You can change View-Show sidebar or not depending on your preferences. Also Authorize your computer as it might ran into problems.
Now click on the TONES and it may not have any TONES there. Now go to add file to library and add the formatted .m4r files (Ctrl+A - select all) and add. It should now appear in the TONES folder under your Iphone. Select SYNC TONES - ALL and sync (by hitting on the bottom SYNC button).
Without disconnecting just go to settings-ringtones- xxxxxxxx and here you should be able to select all the ringtones added to your Iphone.
You can also eject your Iphone 5 and connect a different Iphone to actually just sync only tones.
Similarly you can now add all your music files to itunes library and sync - entire or selected while unsyncing tones, which will transfer all your mp3 music to phone.
Good luck!!