Strange behaviour since installing iTunes 7.1.1 upgrade, (my iBook that is)

Question

Since installing iTunes 7.1.1 update only a few days ago strange things are happening.
1. Incorrect disc and track names
I insert a music CD, the usual question comes up: do you wish to import this CD into your iTunes library? I click on yes and wait a second the CD title and tracks are all wrong. usually it is something I imported a short while ago but once it came up with a disc title I must have imported like 6 months ago
Yes I remembered to check the box for automatic gracenotes access but still this error comes up. If unknown disc, and track 1, track2 etc came up that would make logical sense, but I never saw this before.
If I then click on Access gracenotes assuming the data is available it comes up correct.
2. Failure to recognise disc already imported
If I take out the disc and insert again the one I just imported, up comes the question again "do I wish to import?" I thought iTunes was smarter than that.
3. Plying audio affects slide bar action adversely
While checking through sound files in a Finder window, I play an aiff or MP3 file from the Quicktime style control bar displayed there, while the audio is playing the blue bubble at the bottom of the window does not move smoothly when I try to move left or right.
Note:
I've been trying to organise my music library onto a remote hard drive to free up hard drive space. I did this by copying the folders out of the default iTunes music folder into another iTunes music folder on the hard drive such that all the other related folders are present in the main iTunes folder. Could this move be the source of my problems?
iBook G4, 1.07 GHz   Mac OS X (10.3.9)  

Answer 1

Here is the latest on the iTunes problem.
Focussing on iTunes issues only, (I think there are some system issues which I will try to resolve in the appropriate forum).
1. About 6 months ago my hard disc was so full of music fies I moved most of my iTunes music folder content to DVDs for later transfer to an external HD drive.
2. Now I have a small portable HD onto which I have copied all iTunes music folder content into one place. I created a new folder called 'iTunes music' and within Finder I moved the files and re arranged and re-named some of the subfolders to make better sense of the library structure. Incidentally some of the folders seemed to have got locked, and marked as owned by the system? I don't understand how this happened.
3. When I run the iTunes 7 application it finds the new music folder but only a fraction of its true content is displayed as playlists in the left hand column.
4. Thinking that the application would create its own (updated) ' iTunes library' file if it did not find one in the iTunes folder when launching, I moved the existing one to another folder, but the same incomplete list appears!!
So the question is please,
how do I get the application to construct a new and complete iTunes library file?
Have I really screwed things up?
There does not seem to be any reference to this kind of problem in the help files.
C.