How to play music through my external hard drive through iTunes on my mac?

I recently purchased a external hard drive for my mac for my movies and music, as my disc was almost full.
I have spent HOURS searching how to play music through my itunes without transferring them onto the mac.
BUT everytime I click media destination folder in prefrences and advance, the whole music library in my external hard drive folder is  greyed out, and when i click it nothing happens.
PLEASE someone help...

First, a brand new drive is likely formatted for use with Windows.  You need to reformat it for use with Mac.
Pondini: Formatting,  Partitioning, Verifying,  and  Repairing  Disks... - http://web.me.com/pondini/AppleTips/DU.html
Second, you are better off moving the whole iTunes library to the external drive, not just the media.
iTunes: How to move [or copy] your music to a new computer [or another drive] - http://support.apple.com/kb/HT4527
Quick answer if you use iTunes' default preferences settings:  Copy the entire iTunes folder (and in doing so all its subfolders and files) intact to the other drive.  Open iTunes and immediately hold down the Option (alt) key (shift on Windows), then guide it to the new location of the library.
Do not confuse moving your whole folder and library with moving just media files as in
iTunes for Mac: Moving your iTunes Media folder - http://support.apple.com/kb/HT1449

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