As long as you are happy with the tag information then it really doesn't matter what the files themselves are called as, in general, you'll be using an application to access the media, not the filing system. The one exception might be if you are using a 3rd party media player, like my old iRiver H140, which has an interface based on the file system instead of the media tags.
That aside I like full control of how things are organised too. Do you
need the XML to be correct, as this is only used by 3rd party software, or is it enough to have the filenames correct in Explorer? If
all you want to correct is some capitalisations, then various 3rd party tagging or file management tools might be able to achieve this. Provided it is
only the case of a few letters that has changed then iTunes will still be able to access the file. However it gets more complex if, like me, you want to have full length file and folder names for artists/albums/tracks with more than 35 characters or control character substitution for characters which are not permitted in filenames. Change any of this outside iTunes and it will no longer be able to find the file. You then have to manually relink the files one-by-one or remove and reimport. The first way is too much effort for all but a small number of files, the second means discarding any volatile iTunes metadata such as ratings, play counts and date added information, which may or may not be an issue in your particular case.
Until recently I've been removing & reimporting using
MediaMonkey for the renames (don't let it grab the file associations if you decide to install it) as it has some nice tools for renaming files based on their tags. Lately however I've been using my own script which manages the links in iTunes and thus maintains all the iTunes specific metadata. I've released a few of my scripts at
http://samsoft.org.uk/iTunes/scripts.asp but I don't think this one is robust enough for general release yet. Hopefully I'll get it to that point in the next week or so...
tt2