Directing iTunes to read from different location

Question

Right now, in restoring iTunes to my new computer, iTunes is accessing the playlist from the following mapping - where "E" is an external hard drive disk:
E\Angela itunes\itunes\itunes Music\Artist\CD Name\Track Number
Is there a way to have iTunes change where it looks from "E" to "C" - and also if I just copy the the "library" file from "E" to "C" and change the mapping will I be in the same place as I was with the old computer?
What file (which right now is in "E") is the library - the playlist?

Answer 1

Assuming you use the iTunes default settings where iTunes copied added items to your iTunes folder and organizes your library (meaning - everything is all self contained in the iTunes folder), then all you have to do is drag & drop your iTunes folder (not just the iTunes Music folder you find inside the iTunes folder) to the external drive and copy the entire thing.
If you want to test that it worked or would like to actually start using it from that location instead, use these instructions when you start iTunes to point it to the new location...
How to open an alternate iTunes Library file or create a new one
http://docs.info.apple.com/article.html?artnum=304447
If you are just testing, then close iTunes after you verify it works, and restart iTunes again with the same instructions and point it back to your internal drive (original) location.
At this point your can plug the external into the new computer. If you want to run the library off the external then open iTunes with the above instructions and point to the external. If you want to move it to the new computer's internal drive, then copy the entire folder again off the external onto the internal then again start iTunes with the above instructions and point it to the existing library you just moved.
Cheers,
Patrick