OK sorry let me clarify that for you. I'm using a mac computer but I can use windows (win 2k) by using a program called virtual pc. It runs at something like 20 - 30 MHz at my estimation so you can imagine how slow it is.

The image I showed you is of the main library which started off with 2 copies of the same file plus the Chain playlist. So those other 2 identical files were already there by my laziness to wait to create other files, etc. due to its speed, etc.

But the principle of what I said works. You can import songs from LW via a playlist & then consolidate the library & the physical songs themselves are copied to the iTunes library folders. What I uggest is you try the same principle with the LW Playlist. If possible please give us some feedback I'd like to know if it works or not. My windows version LW is not actually connected to the net so I can't replicate it (unless I put some files into the LW dwnld folder by myself.)