I have the same issue. It drives me mad. If I have say 10 albums, each with say 15 tracks, then in album view, it shows me 150 albums, i.e. itunes is so stupid id doesnt realise two tracks with the same album name belong to the same album. I have tried for about 5 years to fix this, its why I have switch to using android and windows to play my tunes.
I have tried everything to fix this, not found anything which works.
E.g. if I have say cafe del mar volume 12, and select all the tracks, and say get info, it shows that all tracks do indeed have a single correct album name. If I tick the compliation flag and say "yes", it has absolutely no effect on anything, it doesnt work at all. Its broken.
No idea what album artist is for - why dont they just group tracks with the same album as belinging to that album? Why dont they do this if you explicitily mark the tracks as belonging to a compliation? Why?