Create Ringtones in iTunes 10- AAC Version greyed out

Need assistance creating ringtones in iTunes 10:
I have iTunes 10 on a Windows PC.  I went into Preferences, General, IMPORT SETTINGS and set it to AAC Encoder and HIGH QUALITY (128 bkps) and checked the Error Correction. 
The AAC Version in the ADVANCED drop down is still showing as being GREYED out after selecting an MP3  with 0 and 30 seconds as the time limits in GET INFO for a song.
I have searched for a possible "fix" to get the AAC Version to be available.  Nothing works so far.  HELP!!
[email protected]

I had the same problem until I realized that I first need to buy the song and then create the ringtone from the already purchased song. The instructions could have been made clearer on this, and it would be great if you could use the ring tone creation tool to check if the song really fits before you buy the song…
Good luck

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