There is no import folder to library that I can see. there is a backup to disk, organize library, export library, import playlist and export playlist.

Is import playlist the same as import folder?

Okay, I don't know what I did but it started copying all kinds of files but still the only ones I see are the ones I copied from the cd itself.

I HATE ITUNES. They should be required to have a warning before you buy anything that the system is way crazy and you will spend most of your time trying to figure out how to use it and very little time actually listening.