I have iTunes organize my library automatically, and also copy all imported items to its own music folder on my external drive.
I drag music into iTunes all the time, and then delete the original source, to keep my music organized.
If any of the folders you drag into iTunes are .m3u playlist files, which are common, iTunes will also copy any file they point to into its library. Often, you may have an m3u file in a folder with the same music; selecting all and dragging or dragging the enclosing folder will copy the same music twice. If you have an m3u file in your folder of music, either drag it in, or only drag in the music.
I find this to be a pain when dragging multiple folders worth of music, so I usually search for m3u files first and delete them before dragging them in.
iTunes, you’re on version 7! You should be smarter than this.
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