I figured out how to add a downloaded tone to ringtones, but how can I add/move it to notification ringtones. When you download it, then click on it to save, it only allows you to choose ringtones? Anyone?

I've read in various places you create a certain folder on the SD card.

I just Googled and found this. See if it helps:
Motorola Droid - Custom Ringtone and Notification Tone | Mobile Technology Deals and Help

Yea plug the device into your windows pc and create the /sdcard/notifications directory and copy the ringtones there and you should be able to use them as you want.

As forkup mentioned, create a folder on your SD card called "ringtones" and then any compatible files you add to that folder will show up on the list of available notification sounds when changing the settings for your email or text notifications. You can also create folders for "ringtones". And anything you add to those two folders shouldn't show up in the music player app.

There's also an app "rings extended" that will let you browse and choose any music file as a ringtone or notification tone. "ringdroid" is an app for taking a music file and trimming it down and saving as a ringtone.

Worked perfect, thank you Adol7

Hey, I gotta a problem with my notification tone. Today, I changed my notification tone to an actual ringtone but every time I receive a notification, it says "DROOOIIIIIDD" along with the actual ringtone. How do I set it so it just plays the ringtone without the "Droid" sound? I tried going to my notification settings and every possible way to fix it but nothing works. I even deleted my ringtones completely but for some reason it still plays when I receive notifications and it does a different notification sound every other time.

Okay nevermind. I figured it out. But thanks anyway.

Iphonekiller, how did you figure it out. My Droid is still doing the same thing. Help please???