For some reason, When I add my 'My Music' folder to Itunes on my new computer, as Itunes is adding music, It's creating hundreds of playlists from each of my artist/albums...I end up with a ton of playlists (200 gigs worth) How do i stop this?

Essentially, Itunes creates a playlist for each album in my 'my music' folder, resulting in thousands of playlists. Why is this happening all of the sudden? How do I stop this?
Thanks,
Brendan

hi Limnos,
I do not mean the entire ITunes folder but, rather, the contents of the ITunes folder prior to September 29th.  (90% of the media is missing, along with all playlists)  The media that remains says it was added on 9/29 although I know most of it was added many months or even years earlier. There are no playlists listed at all, before or after 9/29.  (I know for certain that I added non-iTunes purchased songs on 10/6 although I had not created playlists for them)
I have my iTunes folder backed up on both an external drive as well as Time Machine.
I run iTunes off of an ITunes folder on my computer rather than from the external, if that's what you mean about how I have it set up. 
Is it OK to drag the entire iTunes folder from the external drive onto my laptop's drive and see if that fixes it?
Thank you for your help!
Deb

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