it is possible that previously you had consolidate Library turned on but now it is turned off.
<span id="INSERTION_MARKER">Here is my issue after upgrading to iTunes Version 10.3.1, running on an iMac OS 10.6.7. Before the upgrade I was able to move/copy a song, TV show or movie from a folder or the desktop into itunes (all compatible formats). The file would copy into iTunes and show up in the respective iTunes folder for example (~/Music/iTunes/iTunes Music/Movies/(movie file name). Now, after the upgrade, the iTunes "show in finder" menu option shows the file in the folder I tried copying from - if the file was on the desktop, or if I moved the file into the trash, iTunes now shows that file in the original location whereas before, the file would actually by copied into the designated iTunes folder. I tried the "option" file copy into iTunes and when I hold down the "option" key to make the copy, the iTunes library disappears from my desktop, not allowing me to make the copy. Any thoughts or suggestions would be appreciated. Thank You