I had already tried to drag and drop as in your example, but when I tried to drop the folder into my Home folder on the new iMac, instead of the dialog saying the folder already exists and ask permission to overwrite (which is what I thought would happen), I instead got a dialog telling me that the folder could not be moved as it is needed by the System. Thats when I tried dropping the folder onto the corresponding folder on the new iMac, eg: drag the Pictures folder from my old iMac and drop it onto the Pictures folder on the new iMac. After everything had copied over, I opened iTunes on the new iMac and it found the folder with my files. Although all the files were there, none of my albums were. I did another MRoogle search on this, took the advice of posts I found, and reimported my iTunes folder. But this time when I opened iTunes I held down the option key and pointed iTunes at this newly imported folder. This time everything came over, including my albums.
Unfortunately I now have duplicate folders of my Documents folder, Music folder, Pictures folder, and Movies folders. I assume that with iTunes, I would just keep the latest folder I moved over, and delete the first Music folder, but Im not sure about the others.
For example, in my task bar there is a Documents folder, and when I open my Home folder there is also a Documents folder, and inside that folder is another Documents folder. When opened, each of these Documents folders appear to contain the same files / folders. but which ones do I delete?