iTunes folder is empty after importing my iTunes library via Home Sharing

Hi. Just inherited an early 2011 MacBook Pro running Mavericks and have been transferring over information from my early 2008 MacBook Pro running 10.8.5. Both Macs are running iTunes 11.1.3.

I imported the content from iTunes on the old MBP to the new one using Home Sharing. The files transferred over but I have three issues.

1. I now have duplicates of every single song in my library.

2. My ringtones are showing in the Tones section but the actual files did not import. I can drag that individual folder over and associate the files, but why did that happen?

3. Most importantly, the iTunes folder in the Music folder is grayed out as if there is nothing there. Yet the music files play and when I check Get Info on any of them, they show the correct path, as if they are actually in the iTunes folder where they should be.

What did I do wrong and how do I fix this?

Thanks!