Are you trying to create a new folder for downloads and add it to iTunes? iTunes won't show the folder, per se...only the files contained in that folder. For example, I have music in the My Music folder, but when I open iTunes, I do not see a folder titled 'My Music.' I just see a general 'music' tab that will show all music files in the folders that I have told iTunes to look in. Hope this isn't too confusing