Moving iTunes to an external drive?

ok, so my internal powerbook hardrive is full, partially due to my iTunes library.

Now I have a 180gb laCie hard drive, and I heard it is possible to move my iTunes library to that instead and run off of that.

1: How do I go about moving this correctly and safely, so I do not loose any of my songs?

2: Will my iPod still sync correctly to this when I plug it in?

thanks for your help.

great thank you so much, I really appreciate it.