As promised in yesterday’s special event, Apple has released iTunes 7.4:

With iTunes 7.4, sync your favorite music and more with the new iPod nano (third generation), iPod classic, and iPod touch, plus create custom ringtones exclusively for iPhone with many of your favorite songs purchased from the iTunes Store. You can now also play purchased videos with closed captioning (when available), easily rate your favorite albums from one to five stars, and watch videos at a larger size inside the iTunes window.

Ringtone support for iPhone was announced yesterday. Ringtones conversion is available in select iTunes store tracks for an additional $.99. Full functionality isn’t expected until next week.