I imported 3000 music files from my PC to my Apple.  folder format is
my music> artist> album>song

After I do this and start up Itunes 3, I use "add to library" function
to add songs to Itunes.

At that point all hell breaks loose.  It appears hundreds of songs
move to a a new folder that I tunes creates called Unknown Artist. 
They leave their original folder and go into this folder.

So the question is, does Itunes 3 move music from the source and if
so, under what conditions?

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Request for Question Clarification by mother-ga on 16 Aug 2002 10:46 PDT

The MP3 ID tags mentioned in seizer-ga's comment are absolutely needed
by iTunes to properly route your music files into their Artist and
Album categories. Can you describe the process you used to get the
music files from your PC to your Mac? Are you following Apple's
"Switch" instructions?

-- mother-ga

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Clarification of Question by r2-ga on 18 Aug 2002 12:13 PDT

I am using Restrospect Express to clone the WIndows files over to the
Apple over a network connection.  Agsin, my real question is:  Why
would ITunes3 EVER change the source file locations.  I would assume
it would only build a database.

I don't have ITunes (or indeed, a Mac). But the behaviour sounds
suspiciously like it is categorising by ID3 tag. This is a piece of
information contained within the MP3, which often says the artist's
name, album name, date of release, website, etc. In the case where
there is no ID3 tag, maybe ITunes is moving these files to the Unknown
Artist folder. I can't help you more because I don't own the product
myself, but browse through the online help for mentions of ID3. Good
luck!