How do I get itunes library to move to external hard drive automatically?

I have a 250 GB Verbatim external hard drive. This hard drive has an existing itunes library from my PC. I figured out how to combine the two itunes libraries, (1 from PC and 1 from Macbook). I cannot figure out how to set up itunes to automatically save to external hard drive. In other words, I've gotten everything onto my Mac, but not onto the external, which is what I want. When I try to move the itunes folders to my Verbatim in Finder, it gives me the circle with the line through it. It will not let me move anything over to the Verbatim. Please help!

On the copying issue, if the drive was used with a PC initially it is quite possible it is formatted to NTFS.  Macs can read NTFS drives but not write to them  You could try to use a utility such as NTFS-3G to enable read-write, or you could use Disk Utility to reformat the drive to FAT (probably FAT32) which can be read by both PCs and Macs. FAT has certain disadvantages too, such as not being repairable by Macs, and there is a limit on single file sizes (2GB or 4GB depending upon the FAT version).
Once you get your whole iTunes folder (not just media) onto the external drive, start iTunes with the option key held down and  show it the new location.
iTunes: How to move your music to a new computer - http://support.apple.com/kb/HT4527
do not confuse moving your whole folder and library with just storing media on another drive:
iTunes for Mac: Moving your iTunes Media folder - http://support.apple.com/kb/HT1449

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