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Unless you have a particular reason to want to know where your music is, let iTunes figure it out and let it put things where it wants to. Don't think about the folders. You can always use iTunes to find them by right clicking and selecting "Show in Finder".

Those who are happiest with iTunes are the ones who let it do its thing or on the other side those who disable "Keep iTunes Media Folder Organized" and "Copy Files to iTunes Media Folder when adding to library" and do everything manually.

If you decide you want iTunes to manage your library, resist the urge to do anything in Finder and let iTunes do it. From the article sneaky linked:



I should warn you that that was my first step on the path back to Mac-dom. Letting iTunes manage my library led to my first iPod and later to my first Mac in over 15 years. Now we only have Macs at home.

B

Agree. Being a windows user myself, it's only natural to want to mess with the folder structure and files themselves - when I first used iTunes I found it so hard to understand what the hell it was doing and I was just constantly infuriated with it!

But, once you get past the inclination to 'fiddle' and realise that it doesn't actually matter where the files are (as long as they're there!), the more enjoyable your iTunes experience will be (plus you'll save so much time!).

The only thing stopping me from moving to a mac at this point is the supposedly 'imminent' iMac update!
 
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