Importing CD's to iTunes fail with "The required folder cannot be found"

Question

I have my iTunes library on an external drive.  Everything works fine, except that I cannot import CD's into iTunes.  When I try, I get the error "The required folder cannot be found".  My work around currently is to:
1. Upfdate my preference for "iTunes Media Folder Location" to the standard location by clicking on the "Reset" button.
2. Import the CD
3. Copy the folder that it created with the songs to the correct location on the external disk
4. Update the preference or Folder Location back to my external library location
5. Double click on the first song where I get the message that it cannot be located
6. Locate it manually, and iTunes then searches for the others and fix the location.
This is extremely frustrating and impractical.  I am on the very latest release and it is still happening.  Does anyone know how to get around it? 

Answer 1

I have the same problem as pyzaptys' with the exception that there is no My Music folder in the default location. I created one but the iTunes install cannot see it. I used the tweakui as suggested in the response to the original post but the app does not see the My Music folder in the special folders selections.
I have tried many angles but to no avail.
To pyzaptys: try these out:
http://www.brightsolutions.com/wagora/w-agora/view.php?site=bs&bn=bs_software&ke y=1109784889&first=1127932569&last=1022869176
http://forums.techguy.org/archive/t-402469.html