itunes files on external harddrive --- PROBLEMS!!!!

Ok.

I transferred my itunes folder to an external harddrive and deleted my itunes folder from my computer harddrive.

I redirected the itunes folder path in itunes preferences to my external harddrive.

This, however, did not automatically bring the files from my external harddrive over, so I deleted all of the files in the itunes window and then dragged the folder from the harddrive over.

This seemed to work and my computer harddrive showed that it had 35gb in free space that was formerly taken up by the music.

BUT NOW I HAVE PROBLEMS

-- I no longer have the free space on my computer harddrive that was left after deleting the music. There's no way that without the music on my computer, my harddrive would be full.

-- I've run both disk utilities and disk warrior to no avail

-- I've searched for MP3s on my computer with the external harddrive off and nothing shows up

-- Suddenly, my ITUNES window is empty -- no songs, none of my playlists...

-- I checked the itunes preferences and it is still directed towards my external harddrive

POSSIBILITIES?

--once, when I was downloading bittorrents and forgot to connect my external harddrive, the computer made a sublisting for it on my comp. harddrive under
/volumes/external harddrive name
so, everything I saved via bittorrent was actually somewhere on my computer harddrive under this weird listing

-- when I search with my external harddrive connected over spotlight (it doesn't work in the finder window search) I find an itunes folder under /volumes/(my harddrive name)

-- when I unplug my external harddrive, however, this no longer shows up



SO
My questions are:

If I moved 35 gigs of music to my external harddrive, why is my computer harddrive no longer showing that the space is free?

Could it have formed a folder somewhere on my computer harddrive that isn't showing up?

PLEASE HELP.