iTunes cannot locate media files after restore from backup

Let me start with what I think I've done wrong. I had my iTunes media files on an external hard drive that died on me recently. I had the files backed up on Time Machine so I bought a new hard drive and dragged the music folder from Time Machine into new hard drive. (from what I have gathered, this is NOT the way to do it but nonetheless, there it is). Next, I went to iTunes/Preferences/Advanced and changed the iTunes Media folder location to the New Hard Drive containing the copied files. Then, I copied the Users/Music/iTunes/iTunes Library file to the New Hard Drive. Next, I opened iTunes with the Option key and clicked "Choose LIbrary" and selected the iTunes Library I had just placed on the New Hard drive. Then, I went to File/Library/Organize Library/Consolidate Files and clicked Okay. Closed iTunes, reopened it and iTunes still cannot locate any of the files. I am hoping someone will read this and say "Oh no, he's done everything wrong!" and tell what to do next because I am at a loss. Help please!

Thanks,

J