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An iTunes library is all the music an your computer, and on you iPod is stored. Just like a library of books, a library of songs, movies, and pictures.
If you copy files to iTunes Library, you will have 2 copies of the file on your computer. iTunes can play files that are not in the iTunes Library. It makes a link to them, like an alias. For example, if you download a song, it might be in your downloads folder. If you let iTunes copy it to the iTunes Library, it will be in your downloads folder and your iTunes Library. If you delete the song from the downloads folder, it will still be in your iTunes Library, and iTunes can still play it. If you don't copy it to your iTunes Library, and delete it from the downloads folder, iTunes will not be able to play it. You should set up iTunes so that it takes care of the files the way you wish. Don't try to arrange the files yourself by dragging them or copying them yourself into the iTunes Library folder. If you do that you might not see them in iTunes because the iTunes database has not been updated by iTunes. This is also true if you move files between the iTunes album or artist folders. Let iTunes do it and it will maintain the database and you can play all your music.
computers talk to each other so the should send a meessage for the itunes library. computers talk to each other so the should send a meessage for the itunes library.
The iTunes library is where iTunes stores your music. You can put music in the library from music on your computer or from your CDs. You only need to set up an iTunes account if you wish to purchase items from the iTunes store.
It means that iTunes is copying everything you have and placing it in a central location. The location being the iTunes Media Folder. This assumes that you have imported items from other locations aside from that folder. You can determine where this folder is located by opening your edit menu and selecting preferences. Click the on the advanced tab in the box that opens and it will be the first thing you see.