Okay, first I'd like to apologies for not making a new thread (as I thought I did) and thank you for your help.
Second, I am using a 3rd Gen iPod Touch 64GB and all music has been purchased through the iTunes store from my PC (as I didn't know if it would affect my other devices), so the PC is the master account I do all of my purchases.
I did all the thing you said and all of my songs are in my current library, but they all have the cloud icon above them except 2. I looked at preferences and it was correct. Then I used file manager and noticed it had double files on the, "Music" folder. I went inside the next Music folder and found only 1 of the newer album that I recently played from the cloud for a test, but nothing else.
I noticed I had selected, "iTunes Media" folder in preferences. This seems to be in error and think why I got all of the duplicate folders. I corrected the path so it stops at, "iTunes" folder which contains the, "iTunes Media" folder. Rebooted and resynced the ipod, but still no love. All of my PC iTunes albums have cloud icons on them still.
There are two option in advanced preferences just below the iTunes Media folder location called.
Keep iTunes Media folder organised
Copy files to iTunes Media folder when adding to library.
Should they be checked? Currently they are both unchecked.
Also, why doesn't the iPod touch list the albums as on the cloud, like the PC?
When I tried to add to library, all it did was make duplicate files. All files were correct, they just had the word copy added to them all.
So, long story short, all of the songs are in my current PC's Music library and listed as in the cloud.
Thanks again for your help.
-=Mark=-