How can I use iCloud for storage without duplication problems?

I recently set up iCloud to use on my Mac and PC. With the exception of a single data file that I have stored in the cloud (as a working data file) that I use both on my Mac and PC....I want to use the rest of my 20 gigs of space on iCloud for storage/backup purposes only. However, I have very little experience with iCloud; and it doesn't seem entirely intuitive to use iCloud.
For example, if I store all of my music and pictures on iCloud, how do I stop Itunes and iphoto from duplicating the results of each music and picture file in those programs? I ask this question because I have seen iTunes act up way too many times (in other circumstances) when it creates duplicate music files.
Just to be clear, I want everything to remain on my local hard drive. I only want to use iCloud for storage/backup only. So, again, how do I stop iTunes and iPhoto from reading music and photo files once I successfully get them on iCloud? (I am thinking I have to hide the archived files once I get them in iCloud, but unsure about how I go about doing that). And here's my second question. To upload my personal music and picture files to iCloud, can I simply drag and drop them into the iCloud drive on my computer and assume they will be successfully uploaded?
My second question seems kind of basic too. But, once again, iCloud does not seem entirely intuitive to use for a beginner. For example, I recently purchased some music from the Itunes store. And while I have it downloaded on my harddrive (like I wanted it)......I don't see it on the iCloud drive (on my computer)....nor do I see it when I log into icloud.com on the web site. Thanks for any replies.

If you have a Mac signed into your account running iPhoto, you might want to check iPhoto>Preferences>iCloud to make sure Automatic Upload isn't checked. If it is checked, all new photos added to iPhoto are automatically added to your photo stream.

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How can I use iCloud for storage without duplication problems?

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