Duplicating the set-up of iTunes stored on an external hard drive to a new computer

I need some help setting up iTunes on my new computer.  Currently I run iTunes off my hard drive with my itunes folder on an external hard disk(E:) (to save space on my main hard disk).  The itunes >Advanced>iTunes media folder location setting = E:\itunes and everything works great.  I am getting a new computer and want the same set-up.  Can someone help me with a procedure to do this?  Is it as simple as, 1) Down load itunes on the new machine. 2) Plug in external hard drive E:\. 3) Set Advanced>iTunes media folder location setting = E:\itunes?  What about other saved preferences, etc?

It won't quite work as you suggest. Your library database is still somewhere on your C: drive. Changing the location of that preference only controls where iTunes will put new media. A new empty library won't magically find any media that might be there and even if you import it, playlists, ratings etc. will be lost. If you have any Apple devices iTunes will detect the "new" library and want to wipe them out.
Do the following:
With iTunes closed, copy the contents of C:\<Users>\<Users's Music>\iTunes to E:\
Hold down shift and click the icon to start iTunes. Keep holding shift until asked to choose or create a library. Choose the library file at E:\iTunes Library.itl.
Check your stuff still plays.
Close iTunes. Rename E:\iTunes as E:\iTunes Media. Start iTunes, test it again.
Close iTunes. Create a new folder called E:\iTunes. Move iTunes Media and all the files/folders you originally copied into E:\ into E:\iTunes.
Shift-start iTunes again, now opening E:\iTunes\iTunes Library.itl.
Check your stuff still plays.
Your library is now portable, connect it to any computer running the same build of iTunes, shift-start iTunes to connect to it and it will work.
tt2

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