http://www.mp3-box.org/making-mp3-cds-with-itunes/

I bought a 1TB external hard- drive to put some music from the past years..I have a problem using Itunes?
A couple people and I are putting our CDs on an external hard-drive so we can all enjoy each-others music. I am using a macbook…on a mac, when opening a mp3 file…ITunes makes a copy in a folder in the music folder. I cant put 400gb of music on my 200gb mac. ITunes wont let me install on the drive…can anyone help me with that…i also need to load some songs 2 my ipod…thanks
Couple questions:
First, are you all sharing the external drive? Are all computers hooked up to it through a network or something?
You move your iTunes Library, follow this walkthrough:
http://support.apple.com/kb/HT1449
(that’s for a Mac – there is a link right at the top to use a PC instead). When you browse for the location, just pick the external hard drive.
Keep in mind that will only work when you are connected to the external – if you move your music there, you will only be able to play/sync your media when you are connected to the external. That’s why pluging it into a home network would be your best bet. You can also buy a AirPort Express for $99 from Apple that will let you share both internet and music wirelessly (it works with both Macs and PC’s).
If you have everyone sharing the external set their iTunes up the same way as the link above, you will be able to “share” the iTunes library and access all the music and video from all those computers.
I hope that helped!
Burn an mp3 CD using iTunes