What is happening is all you are seeing in iTunes is a playlist from LW. A playlist is simply a list of pointers to the player to show where to find the file. If the file is removed, the playlist will not work

What you need to do is enable auto-importing between iTunes and LW. To do this, see http://www.gnutellaforums.com/open-d...tml#post129773 about (1) enabling adding file to iTunes music library (1st image, also shown below),



and (2) enabling auto-transferring of file between LW & iTunes (3rd image, also shown below). ie: LW's menu bar, Tools -> Options -> My Files, scroll down to iTunes option & click Configure. Check the option for Add Audio files I downloaded from LW to iTunes.