SubscribeAnother mefi user just shared this with me in a different context, and I haven't tried it yet, but it sounds like what you're asking about:
"Go to preferences (control - ,) and change the location of your library to the destination make sure it is set to keep your library organized.
"Go to the 'Advanced' drop down menu and hit 'Consolidate Library...'
"Takes a tad longer than copying the folder, but guaranteed to work as perfectly as possible. iTunes does not write metadata to the actual files every time you change something. This makes sure that that happens, and nsures that the database files are good."
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posted by TeatimeGrommit at 3:58 PM on October 31, 2007