Every time I download a CD it goes into the wrong file on PC

I have just decided after many many months to update my iPod. I have had huge problems trying to locate the the music files and found most of them in a Compilations folder. I so don't want that - so I have had to copy them all over and then go back and delete from Compilations then back into itunes to locate the new path. Finally sorted it but I still have the problem when downloading a CD - it automatically sets up a Compilations folder - how do I stop that? What I would like is for the folder to be either the name of the CD or the name of the Artist. I have searched the settings as best I can but can't find anything to help with this. Some double CD's go 1 disc into the CD name and the other No. 2 disc into Compilations. Very annoying. Once I have this sorted I would like to do a new complete back up - any help with that too would be good - will be backing up to memory stick. Any help much appreciated. Carol

*I would like to to change it so that nothing defaults back to a Compilation folder*
The CDs you are importing appear to be tagged as compilations, there's no setting in iTunes that is causing them to default. All you can do is check the CDs before you import them to make sure that if they are not actually compilations you change the information. If they are compilations then obviously it would make sense to leave them be.
You might want to set the compilations option for the iTunes Browser so you can easily locate and play tracks from compilation CDs. Open iTunes and go to Edit>Preferences>general and check the option "Group compilations when browsing". If you turn on Browsing from View>Show Browser or from the browser "eye" icon in the bottom right of your iTunes window Compilations will appear at the top of the Artist list. Click on Compilations and the compilation albums will will appear in the album pane.
*I have also just done a straight forward copy of the iTunes folder over to a memory stick - is that ok for a back up?*
Yes, if you are keeping all your music files etc. in the iTunes Music Folder then copying the entire iTunes folder will capture it and the library files. Copying the whole folder and it's contents will give you a complete copy of the iTunes files at that point in time.

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