is my itunes folder structure normal?

I noticed that i have 2 different folders, one higher up and a another folder within it for my itunes, and wonder if I need both folders.

I have attached a screen shot, for all to see what I mean, which folder and contents is important? in itunes, I have keep albums organized, so it makes a copy of the albums in folders.

the top Sossitys itunes library has all my albums copied in the music folder.

I think itunes is using the upper level, as the music folder in the upper level has the copies of all my albums, this is right because in itunes preferences I have make a copy checked for keeping everything organized.

when I clicked on the small itunes icons in the inner nested folder, it opens up to my itunes library.

so I should try placing everything all in the upper top nested folder? I notice I have 2 music folders, but I think itunes is using the upper music folder.