i used it, what i think is that the program is able to 'see' the iphone in 'my computer', then it can just drop the files into a 'ringtone' folder, that would mean it didn't hack anything.
well, the problem is that the ringtones live w/in /var/media/Ringtones (or something like that) ...
that path is unaccessible without first jailbreaking the phone.
in other words, even if you are able to interface with the device, you can't see that path until the phone is jail-broken
thus the confusion as to how iphoneringtonemaker accomplishes the ringtone installation w/o a hack