iTunes organization tips please

[beachmonk]

I just bought newer (2009) mac mini.
I have an old 2005 G4 mac mini.

I want to get my itunes organized this time.
I store and access my itunes from an external drive EXCEPT for a few recently uploaded items.

I have never figured out the best way to organize iTunes and I seem to always have my updates loading on my Main drive not my external drive.

I want to use iCloud but I can't pay for it now so the external is my best option.

I loaded the latest iTunes to my new mini now I want to organize. Should I organize on my mini drive first then move or organize to my external?


I also have several Itunes libraries for different purposes. How can I get them connected to my new iTunes?

So many questions!

My new mini has a 500 GB harddrive
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Machine Name: Mac mini
updating info .........