Migrating to brand new machine with iTunes/iCloud in mind?

Okay all, this might not have been clarified yet by Apple, but here's my question:
I'm finally migrating from an iBook G4 to a MacBook Air as we speak. The vast majority of what's on the HDD on the iBook is music (40 some odd gigs!). The new machine has a 64 GIG HD, which was a very deliberate choice on my end, as I am a major Spotify user and was planning to really run with iCloud for my music needs.
Anyway, question is, does my music have to physically stay on my new HDD in order for iTunes to scan my library and give me availablity to it via the Cloud? For obvious reasons of storage limitations, I couldn't keep all of it on the MacBook just so that I could at some point stream it.
So does/will the Cloud constantly update and check back in with what I've still got physically on my main machine, or could I move it onto the new machine, have iTunes scan it, then move it off, rinse/repeat as necessary?
Thoughts anyone?
Thanks...

It would have been wiser to use the TM backup rather than your old machine. Also it would have been wiser to have followed the on-screen directions when the machine first started up in Setup Assistant. In short, let it work and finish, there is no method to speed it up. In the future to gain speed use faster connections such as Firewire, Ethernet or if you can Thunderbolt.
Also you may want to book mark and use Pondini's Lion or Mountain Lion Setup Assistant tips guide.

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Migrating to brand new machine with iTunes/iCloud in mind?

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