How to set a song as my ringtone?

I just recently purchased an iPhone 4, and I downloaded several songs from my computer onto my phone. I can listen to each track just fine, but for some reason I can't set any of the songs as my ringtones:

I went into settings and went to set my ringtone, but when I did the only songs that came up were the ones that were default to my phone already, and none of the songs I had downloaded showed up. How do I make it so I can use one of my songs as my ringtone? If I have to buy an app I'm gonna be pretty annoyed

When you go to your itunes you have to go to ringtones a buy a song from there

Buy it or make it by yourself with app.

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