HT1848 My iTunes is transferring all of my purchases into my trash. How can I change the download folder back to the backup folder?

I just noticed that all of the purchases I just transferred have ended up in the trash. Tried it again after downloading a new app and it happened again. Does anyone have any idea how my Trash folder became the designated download/backup folder...and how can I change this?

In iTunes open Prefs > Advanced and see what it says for "iTunes Media folder location."

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