Installation notes from the official site:
The application has two components
* Desktop application – used to build a custom XAP package with 5 custom ringtones you select from your computer(Requires .NET 4.0 Framework)
* XAP application – to be deployed to your WP7 to install custom ringtones to the system
Notes
* Ringtones have to be in the WMA format at 48KHz as required by the OS. We recommend using Expression Encoder 4(free) to transcode any MP3s.
* Currently, to deploy the XAP you will have to use the Microsoft “Application Deployment” tool with the Windows Phone 7 Developer SDK. In the future, we hope to make available a standalone deployment solution for homebrew apps.
How to use it.
Step 1: Download ChevronWP7 custom ringtone manager aka Ringtone Installer.
Step 2: Run the app and select up to 5 ringtones.
Step 3: Unlock your Windows Phone 7 device with ChevronWP 7 unlocker.
Step 4: Use the “Application Deployment” tool to transfer the ringtones on WP7.

That’s all.
Download ChevronWP 7 Custom Ringtone Manager.
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