Song Sender allows you to pick a song from your iPhone's song library and send it to a friend via email. If you'd like to use a song from your library as a ringtone, you can do that too. Install the package into your iPhone using your favorite installer application. When run, the software reads through your library, creating a scrolling list of your songs. Tap any song and you'll be prompted with three choices: play it, send it by email, or add it to your ringtones.
It practically reaches Zune-levels of squirting functionality! Small print: Fair use only. This software is not intended for pirating purposes. Use your powers for good, not evil. Do not take internally. Software is not a substitute for advice provided by a doctor, lawyer, or the EFF. In case of rash, itching, or swelling seek medical attention immediately. This software was brought to you by the letters E. r. i. c. and a.
Update: Version that does not rely on whether you've installed /bin/cp is found here.
I found this athttp://www.tuaw.com/2007/08/21/song-sender-sends-iphone-tunes-to-email-and-ringtones/