The site is called ToneBee.com. After you sign up with the site, it allows you to upload your favourite song/video. Once you upload it, ToneBee ringtone maker will generate the waveform for the song and try to extract details of the song.
Now you can select the fragment of the song to generate the ringtone using its clip marker. You can select the start and stop point from the song and preview or save it.
ToneBee has plans to allow you to send your ringtone creations directly to your mobile phones through wireless carriers. But for now you can create it and save it on your computer and then transfer it to your mobile phone via bluetooth or cable.
I haven't tried ToneBee yet but looks like its something I can try when I want to change my ringtone. If you are not looking into creating your own ringtones then you can download Unlimited Ringtones For your Mobile Free
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