Just updated to a refurbished MacBook running Maverick from an iBook on Panther. I can't get iTunes to recognize my library in my external. Thoughts?

I just boght a refurbished MacBook (2009ish) with 4gb RAM and 160gb hard drive, running Mavericks. It is an update from a 2006 iBook running Panther. I have a tera external. As this is a refurbished machine, I do not have the startup disks.
In general setup has been fine, with the exception of a couple of issues.
1. I cannot get iTunes to recognize my iTunes library on my external. I've done all the setup, a few times, but it just won't acknowledge it's there. I downloaded a few files from the Cloud, but when I look in the library they're not there. They're also not in the "music" folder on the hard drive. Suggestions?
2. For some reason, when I create an "iTunes Media" folder on my external, iTunes does not save things into it. Every single album/song/artist is listed as a separate folder. That is, when I open my external in Finder I get a window with well over 100 folders. This would be fine, if not for the fact that I have other, non-iTunes files, on my external and it makes it a pain to find them when I need to. This isn't such a big deal, but it is a rather pain in the arse. Thoughts?
3. I have also moved my iPhoto library to my external, but when I click on "iPhoto Library" in my external I don't see any actual files, despite there being over 1000 photos in the library. Is this normal? It doesn't seem right.
Any help is greatly appreciated.

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