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On Apple’s iPhone Tech Specs page, it now states that iTunes 7.3 will be required, however it doesn’t yet exist in the wild.

http://www.apple.com/iphone/specs.html

i think that was pretty much expected: 7.1 = apple tv, 7.2 = itunes plus, 7.3 = iphone. probably will see it thursday night or friday early afternoon.

according to macrumors they expect a ringtones tab. the mention a service called “make a ringtone” which for 99 cents will give u a little garageband window to pick 30 seconds of a song to make a ring tone. no idea if this is cd ripped song or only itunes store songs, but as far as ringtones go, 99 cents is cheap, and picking your song and what part beats the stuff they have out now.

http://www.macrumors.com/2007/06/27/itunes-7-3-with-custom-ringtones/