Managing movies with iTunes problem

I want to manage all my movies in mp4 format with iTunes and came across a problem I cannot solve.

When I import a movie into iTunes it lands in the "home movies" folder. No problem, I thought, as I can change the media in the settings from "home movie" to "movie".

It then appears under movies in iTunes BUT... and this is the problem: it does not move the film from the "home movies" directory to the "movies" directory on the harddrive. It just creates a new (empty) folder with the movie title in the "movies" directory.

You can imagine that I would like to have all my films neatly sorted under movies and stored in the movies directory on the harddrive and not among dozens of self recorded homes movies.

Why is it so? Is there a workaround? (Of course you can copy each film from the homes movies directory to the correct (empty) folder that iTunes has created, but in doing so you have to close down iTunes. And when you have a few hundred films it will take a long long time doing so).