Q: I Tunes preferences question

iTunes: How to move [or copy] your music to a new computer [or another drive] - http://support.apple.com/kb/HT4527

Quick answer if you let iTunes manage your music:  Copy the entire iTunes folder (and in doing so all its subfolders and files) intact to the other drive.  Start iTunes with the option (shift on Windows) key held down and guide it to the new location of the library.

The above does not in any way involve re-setting preferences.  If you do that you are just telling iTunes that in future you want it to store media in a new location.

iTunes works with a library file in concert with media in a location known to that library file.  It is not super flexible.  You can have multiple library files if you wish, but the more you wish to work with iTunes outside the constrains of how Apple sets it up for basic users the more you have to really understand how it works.

What are the iTunes library files? - http://support.apple.com/kb/HT1660

More on iTunes library files and what they do - http://en.wikipedia.org/wiki/ITunes#Media_management

What are all those iTunes files? - http://www.macworld.com/article/139974/2009/04/itunes_files.html

iTunes 9 [and later]: Understanding iTunes Media Organization - http://support.apple.com/kb/ht3847

Image of iTunes folder structure Dec. 2011 - https://discussions.apple.com/message/16923545
see also:
Image of folder structure and explanation of different iTunes versions (turingtest2 post) - https://discussions.apple.com/message/13025536 and https://discussions.apple.com/message/17457605