If you tell iTunes to 'Keep the Music Folder Organized' (under the advanced tab of the preferences) you can update the ID3 tags as you import the CDs so that they stay in one folder.
For example, if you have that option on, and you import snoop dog's album that has lot's of different artist names such as 'snoop dogg feat. xxx', etc... just select the whole album, re-name it to 'snoop dog' and iTunes will put all of those songs into the same folder.
Hope that makes sense...