Relocating and organizing downloaded music into "My Music"

I recently just switched to a mac and I'm having a problem getting Itunes to organize my downloaded music. I have done a search, but haven't found a previous post with my problem. With Itunes on Windows XP, I could download a song into any folder, when I imported the song to Itunes, the song would be "cut" from the download folder and "pasted" into "My Music" and organized by artist.
On my Mac, this is not happening. I go to File>add to library find the song on my HD and press import. The song imports to my itunes song list, however the song remains in the original location. This is very annoying. I like all of my music to be located in "Music" and do not want to have to manually move every song and create folders for each song.
Any help would be welcomed.
+My current itunes settings+
Itunes 8.1.1
Itunes music folder location:
Macintosh HD:Users:ACM:Music:
Keep iTunes music folder organized
Do not copy files to iTunes music folder when adding to library

I like all of my music to be located in "Music" and do not want to have to manually move every song and create folders for each song
This is what happens on a Mac too. iTunes organises your Music if you ask it to. If you check "Keep iTunes Music folder organised" and "Copy files to iTunes Music folder when adding to library" then your music WILL be organised into folders etc.
However, if you want to organise your own Music, uncheck those two Preferences and iTunes will simply create pointers to all your music without creating an unnecessary copy. You will still only have one copy of everything.
The choice is left up to you. That's the big difference between Windows and Mac.

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