You need to go to the iTunes web site and read about exporting/importing iTunes music. It's not as easy as you described. Another fact, iTunes/iPod is locked to a specific PC. You need to go to the iTunes site.
I recently purchased a 4gb flash drive. The purpose was to download, and transfer my Itunes library to my wife's desktop. I thought I had loaded the library onto the drive, and downloaded it to the other computer, and while the flash was connected, the songs all played. However, after disconnecting my flash, when I went to play the music, all I got was an exclamation point with a message that asked if I wanted to locate the song file. I have no idea where to look for the music files or if the music even downloaded. Certainly the text all downloaded, but no songs would play.
Details... Both computers involved operate Windows XP, and both have tons of memory. The flash is a San Disk Cruzer micro 4.0 GB (hard to believe I only paid 69 bucks for 4 gigs!)
Any help would be appreciated!