How do I create a new album in itunes and add songs to it?

In general an album in iTunes is any collection of tracks with the same Album title and Album Artist, or Artist if Album Artist is blank, or that is marked as a compilation.

See Re: Merging albums if you're having trouble making the tracks appear as a single album.

You can drag and drop tracks or albums onto regular playlists to add them to that list.

tt2

Do you really mean an album, or do you mean a playlist? I use a different version of iTunes so my telling you how I do it won't help, but to make a new playlist you can look in the menu items at the top of the iTunes window. Once you have your new playlist you can drag tracks from other playlists to the new one and they will be added to it (they will remain in the old ones too).

If you really mean a new album, that is more complicated because then they will be removed from the old album. I won't go into it until I know that is really what you want to do.

As turingtest2 notes, these are ending up as different albums because of the labeling in certain fields. You can probably do your shuffle simply by adding them to a playlist and play that playlist with shuffle. If you really wanted them in a single album you would have to get info on all the tracks and change the "album" field to something such as Friend's Mix CD, plus make sure you entered something into the album artist field so it all appeared as a single album. Of course in doing this you would lose the original album information should you wish later to actually purchase the album where one of the tracks occurred. That would not happen if you simply viewed them as a single playlist.