Create Smart Playlist of dead tracks in iTunes (9.2.1)

I need to create a smart playlist of dead tracks in iTunes. I know there are scripts that find and delete dead tracks, but I'm in a situation where I have to pick through them one by one and decide which to delete and which to repurchase/redownload/etc (had a hard drive disaster, yada yada)

Anyway, I scoured the web to find this and most of the solutions didn't work for me either because the directions were incomplete or no longer worked in newer versions of iTunes. Figured I'd put the solution here for those who might need it.

1. Create a *Static Playlist* called "All Files" (or whatever you want to name it)
2. Select ALL of your music in your main Music Library, and drag it to the "All Files" playlist - note: if you have a lot of music it may take a few seconds (or minutes?) for it to catch up to your drag...just hold the mouse button down with the cursor over the "All Files" playlist until the icon with the red number shows, then release to drop them.
3. Create a *Smart Playlist* called "Dead Tracks" with a rule of "Playlist" > "is" > "Music" and second rule of "Playlist" > "is not" > "All Files"

This should give you a smart playlist display all currently dead tracks in your library.