Ipod is set for automatic updates. Does that matter?

there is no explore option in my itunes

I'm not sure where it said to find the Explore button in iTunes do you? Select Saved Files folder & press the Explore button. Sample image here: Using Library Explore button to access downld folder (click on link) & the folder will open up for you. Make sure you see the video by rkapsi as suggested.

also problems with limewire
 

I've just purchased the new Ipod shuffle and I tried the trick posted about going to limewire, hitting explore and trying to drag the files to my ipod that way. Unfortunately, when I try and drag them over, a circle appears with a line through it, not allowing me to drag them over. I've tried all the methods shown in all the tutorials to no avail. I'm considering returning it and sticking with my mp3 player. No way am I purchasing songs through their store when I've got 500+ friggin songs with Limewire...ugh!

My limewire files do show up in my itunes folder under a shared file but I can't drag them over that way as well.

I really don't know why all of a sudden people have trouble adding songs to iTunes. Maybe some update (I don't let mine connect and it works just fine)

Just a thought (not the best way) but you could try clearing your iTunes Library then copying the songs in the Shared folder just in case something goes wrong. Now use iTunes to convert to m4a or ACC and add all the songs from the copied folder and then try adding those to your iPod.

P.S. I have never tried this myself since I don't own one, but it's worth a shot

What OS are you using? I'm a windows user, so:
The LW playlist that shows up in iTunes is just a playlist & so you won't be able to add from that.

Try going (in iTunes) file > add file to library. Browse for your LW saved folder (by default it's C:\Documents and Settings\your name\Shared...if you've changed to another location then tools > options > saving in LW will show you the location). Once you've found your saved folder, you can add from there.

If you want to add all of your saved files, you can choose (in iTunes) 'add folder'...again browse for your saved folder & add the whole thing. This will take some time.

Or you can open your LW saved folder, right click on a song > open with > choose iTunes...should go into your iTunes library.


Transferring music to iPod & iTunes

I'm a Windows user too and drag and drop from the shared folder works for me (well I can't test adding them to an iPod since I don't have one).

If a Limewire playlist shows up in iTunes then you are doing it the wrong way. Why should iTunes register Limewire when adding from your shared folder (or any folder)??

Sometimes drag & drop doesn't work for some people, I don't know why. It works for me but doesn't for some people. The other ways are an alternative if drag & drop doesn't work.

The LW playlist shows up in iTunes if iTunes sharing's enabled within LW & LW's open. Sometimes people try to add to their iTunes library from this playlist.

Hmm.. Then maybe advising people to disable iTunes sharing in Limewire would help. That may just be the root of the problem.

This should not be an issue on the same OS. One more thing for the devs to have a look at.

Oh BTW could be the version of iTunes. I use iTunes 7 on a Windows XP MCE 2005