Help once I've transfered itunes library to new computer

I transfered my itunes library from my old computer to my ipod and then onto my new laptop.

I see all my songs from my library on the lap top, but when I try to play a song it says that it can't locate the original file. Then it asks to either locate it or cancel, when I press locate it brings me to my itunes folder, but then I don't know what to do.

when I'm in itunes before each song there is an "I" with a circle around it. Anyone have any suggestions? Did I not transfer it properly and need to re-do it?