So on option 2, when I upload the song from a CD they will go into my internal hard drive and then I will have to manually move them to a folder in the external hard drive? or how do I get them from the CD to the extranal hard drive folder?
Ah, good point. Yes, that's what would happen. iTunes would rip them to your internal drive, and then you'd have to manually move them to your external drive.
Problem with that is iTunes would still think they're located on your internal drive, so after you manually moved them to the external drive, you'd have to delete them from iTunes and then re-add them from their new location. Yuck.
Also, having the names of the files (Apple lossless format) in the external hard drive in the library what like in option 2 what will havepen when I sync the iPod? Will it be loaded only from the internal hard drive files?
If you tell iTunes to sync your entire library to your iPod, it will mix files from internal and external.
What I am basucally intending to do is to have two versions of the same songs. One in ACC and one in Apple Lossless. The ACC version is just to be able to load them to my iPod and fit and the lossless version to play at home through the Squeezebox and Hi-Fi systems.
Here's how I would do this.
I'd have one library, and since it'd contain both AAC and the big lossless files, I'd put the library on the external drive.
Whenever you uploaded (ripped) songs from a CD, they'd wind up on your external drive, so you wouldn't have to worry about manually moving stuff around. It shouldn't matter that your AAC and lossless files are on the same drive.
To solve the problem of which version of a song your iPod syncs, I'd create two Smart Playlists.
Playlist #1 would have the rule "Kind contains Lossless". I'd call it "My Music - Lossess". iTunes will automatically put every lossless song into this playlist.
Playlist #2 would have the rule "Kind does not contain Loseless". It'd call it 'My Music - Other". iTunes will automatically put anything not lossless (like your AAC stuff) into this playlist.
I would then tell iTunes to sync only the "My Music - Other" playlist to my iTunes. This guarantees that no Lossless stuff gets put on the iPod.
Also, if you want to make other Playlists that contain just your AAC music, you just start off with the first rule being "Playlist is My Music - Other", and then add your other rules.
I did started yesterday with option 1. I created the new folder with music files and library in the external drive. I also created a playlist and everything looks fine in iTunes. The problem I am facing is that I don't see the "Playlist' folder created in the external drive and when I direct the Slimserver (Squeezbox software) to the external drive it finds the songs and play them fine but it does not find the playlist. It acutally says "Playlist : Empty" I think it is becuase the file does not exist in the external drive for some reason.
That I'm not sure about. The playlist itself should be stored in the iTunes library you created on the external.
