I don't know if this just happened because I installed iTunes 11 but I notice the icloud symbol beside my Music and Movies libraries. I presume this means that my music and movies are being stored in the cloud. Is this correct? If so, how do I stop this from happening? The iCloud preferences do not have a setting for this.
iMac (24-inch Mid 2007), OS X Mountain Lion (10.8.1)
No, your media is not being "stored in the cloud." All this means is you can now access your iTunes Store purchaes, via iTunes, without downloading them. That is, if you have not already downloaded them.