Where are those files actually stored? iTunes is a playlist manager, it doesn't actually store then in the program, They'll be in your my music folder? or an iTunes folder? Find where they are then simply copy all the files/folders to the new location.

Then open iTunes and:
3) Edit > Preferences > Advanced

Look for your Music path (like C:\Users\El3utterfly\Music\iTunes\iTunes Music) change this path to that of the newly transferred files. So like: D:\music\itunes music)

Then save and close. You can then delete the old collection after they've transferred. Then open iTunes and your good.  

i dont update itunes reguarlly- because i have 3 ipods to update as well.

I do have lot of music and Every cd has a playlist- so there is a lot to work with.

Maybe i will just play with it and see what happens.

Thanks for your tips though.