Do I need to pay again when I download past purchases from the app store?

Bare with me...I need to explain the situation first.
I purchased an external harddrive and with the help of phone support, I moved some(most) of my itunes stuff to that hard drive. However, when I sync my iphone, it occasionally says something like..."did not sync song because it could not be found".
When I typed in the finder thing at the top right corner of my screen (spotlight?), I searched for itunes media. I found one file but it doesn't show me it's location. So I started looking (I'm still new to this) but I think I found 2 itunes media folders...1 on my imac harddrive and the other in my external harddrive.
After reading some of the online posts regarding downloads, I discovered that it is possible to redownload something you purchased before and NOT be billed again. I know that when I download an app in my iphone and then delete it, if I go to download it again, it tells me i already downloaded it and can download it again for free...so no problems there.
However, my interest is to greatly reduce the amount of "stuff" I have in my external harddrive as well as my internal harddrive. But before going into my external harddrive and deleting all 8 seasons of 24...which is something like 250gigs, I wanted to test the theory. So I looked for something cheap that I downloaded. I would then delete that and then go into the itunes store to redownload it again.
One thing I also want to mention, I read that there should be a purchased tab in my itunes store. Either I don't have it, or don't know where to look. One other thing I read is that it might be not available to me based on where I live. I live in Toronto, Ontario.
Back to what I did. I deleted an episode of Wallace and Gromit (kids show). Then went in itunes to download the same episode. When I checked my account information...it shows that I was just charged for that download...AGAIN! Now granted it was only $2.99...apparently this doesn't need to be the case.
So...going back to the 2 itunes media folders. I checked my system preferences and saw that itunes was set to save downloads here.../users/"my name"/music/itunes/itunesmedia. This folder is on my imac. However, the Wallace and Gromit video was on my external. So when I deleted it, I removed it from my external drive.
So here's what I have done so far...I went into the system preferences and proceeded to change the path to my external harddrive.
Now...before I go and delete something else...am I doing things correctly?
Also...what should the path be in itunes? I suspect it should be to my imac so that anything I download, downloads successfully to my internal harddrive...and then I drag and drop into my external...
I also want to mention that I have a time capsule as well. So basically...I want to keep my imac and time capsule free of as much media as possible...My computer and timecapsule each have 1 TB and I nearly maxed them out...I take alot of home videos with an HD camera...I had no idea how much that would add up.
Any help would be greatly appreciated.
Thanks

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