Later on I deleted this folder. Now whenever I open itunes it is blank and if I connect my ipod I have to transfer purchases.
This music will appear on the library. I can also download songs.
When I shutdown itunes and restart the library is blank again.
Have tried unistalling and reinstalling heaps of times. Have also completely deleted my library from the computer (the folders are still there but itunes won't pick it up until I synce the ipod each time