Hi Hope this will help you. Found this one in e-how.com. Here it goes:
1. Get iTunes. iTunes can be acquired through Apple's Web site, as well a number of iPod partnering Web sites. iTunes is the media library application that is designed to be compatible with your iPod, so it is the best application for the job.
2. Add music files. The easiest way to add music files to your digital library is to download them. Downloading can be done legally from a number of different file sharing applications; however, to ensure that your files are compliant with your iPod, it is safest to download songs directly from iTunes.
3. Organize your library. Now that you have music in your iTunes library, you can begin to organize it. Open the iTunes Preferences screen and click on the tab for Advanced options.
4. Locate the iTunes folders. The new screen that appears will show you the General music file options. The first thing you will be able to adjust is the location of your iTunes music folder. This location can be changed by clicking on the "Change..." button and browsing for a new housing location.
5. Organize future files. Next you will see the option to "Keep iTunes Music Folder Organized." By clicking on this feature, you will remove yourself of the burden of future file organization. iTunes will organize all new and imported files into categories such as album and artist.
6. Store music files. You can store all of your music files in one location by placing a checkmark in the box labeled "Copy files to iTunes Music folder when adding to library." This will make finding and working with your music files easier.
7. Apply your changes. When you are done with this screen you can click "OK" to apply all of the new management changes or you can click "Cancel" to exit without applying any of the changes you may have checked.
Read more: How to Organize an iTunes Music Folder | eHow.com
http://www.ehow.com/how2023667organize-itunes-folder.html#ixzz0zrZXpstA
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