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Just as a quick heads up, since your new to Mac's. Most programs you would download from the net will end up being a .dmg file. In your case it looks like it was a .sit file, which when unzipped, became a .dmg file. A .dmg file is a disk image. If you double click the .dmg file, it will put...

If you want iTunes to add that song to the Library folder, you need to also select the checkbox below that says, "Copy files to iTunes Music Folder when adding to library"