External hard drive and Itunes?

So I finally decided to go out and get me a External HD (a 640 WD My Book for one hundred bucks, I hope that's not too bad) and now am getting ready to transfer all of my junk that I just can't find the willpower to delete. Now, my biggest concern is transferring my Itunes and music folder over to this HD...is a just a click and drag thing? I searched the net on how to do it but I am not too tech savvy and really, some of the walk throughs are huge.

Has anyone ever done this and care to offer some pointers?

It depends, I think your iTunes music has to stay in its folder on your hard drive in order for the music to Sync to your ipod. I suppose for songs you dont listen to it'll be alright to drag over.

It also depends, are you backing up because you plan to reformat your computer or it just for backup?

If you plan to reformat your computer, then drag everything. If it's just to backup, you'll have to copy and paste.

I've relocatted music to different drives a couple of time. I think I just dragged and dropped then reasserted where my iTunes library was. Then again I let iTunes keep my music folders organized. I'm anal retentive like that.