Error importing CD (required folder cannot be found)

iTunes 10.6, running on a Mac Mini with OSX 10.6.8
Hi all,
A bit of backstory. Been using iTunes to manage my music collection for over 8 years. At one point, I moved my music off of a primary disk to an external disk, although perhaps oddly set up, in that the 'iTunes Music Library.xml' file was still local (under ~User/Music), and just the music files were external (under /Volumes/Media/Music).  When the iTunes Media directory structure upgrade happened, the only way I could access my music was to put a soft link from the Music folder to my external drive.
For awhile now, I've been in a state where for the most part, I can listen to all of my music, but when I try to import a CD, I get the 'required folder cannot be found' error.
Help!  Do I have to rebuild my file somehow?  Edit the xml file directly?
Thanks so much.
I'm happy to provide more information, such as the xml file, directory listings, etc..  I'm just not sure what's helpful.

I have the same problem.  I recently moved my music from a Vista PC to a new Laptop with an external CD drive. It will copy one song from the CD and it will show in the Music file and then I get the message ' Error importing a CD - Folder not found'.  I must unplug the CD drive and plug it back in.  I have seen no fix for this problem.

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