"iTunes library cannot be saved. the folder is full"

I am getting this pop up warning on iTunes. I've doubled checked my settings and all my imports and downloads are still going to an external hard drive, which clearly isn't full, it has over 220 GB of space, I've only filled 69 of it with music and photos. That said, it did just let me purchase an album, but I'd checked the "don't alert me again" box.
What does this mean? I did a search, and several people have asked this in the last few days but there has been no response to them.

Chris, I appreciate your response. But in my original post I said I have done this. The folder location has always been my external drive. Recently, the drive was inadvertently unplugged and iTunes reverted the location to my C drive, but I corrected it. The error is now happening. It's hard for me to determine if it is my computer having issues with its memory and with iTunes, or if it's the iTunes program. BUT the hard drive shutting off has happened to us before, and again all I did was correct the setting once the drive was turned on again and all was well.
I did a forum search before posting (as I generally do to see if my question has been asked already) and saw three topics with this same question with no solution or responses. Now to see the Aragrist take the time to reply with their story to bump my topic up is concerning. Does anyone else have any thoughts or is having the same problem? Is there a way to query Apple Support to see if they are getting feedback and questions about this other than here?

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    Thanks again for the gracious response UV.
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    == Error -54 ==
    From an OS9 reference, error -54 is a software lock on a file or a permissions error. (Some of the old codes still apply to OSX although there is no formal list of OSX error codes.)
    First, try simply restarting your computer.
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    Why does iTunes keep showing a -54 error when I sync my iPad? - https://discussions.apple.com/thread/3727114
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    Morning dalebird,
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    Unknown error (-54) while syncing ipod - https://discussions.apple.com/thread/1082953 - problem was locked files
    Why does iTunes keep showing a -54 error when I sync my iPad? - https://discussions.apple.com/thread/3727114
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    Morning dalebird,
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    For more information on this, take a look at this article:
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    http://support.apple.com/kb/ts2529
    iTunes: How to re-create your iTunes library and playlists
    http://support.apple.com/kb/HT1451
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    Hi,
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