I found an iTunes folder and it seemed to have all my albums in it!! I did not ask iTunes to do this so I am assuming that it did it automatically. I had placed all my albums in the iTunes folder, so I would really appreciate it if someone could tell me what this additional folder is for!!!
Not sure what you mean here, are there two iTunes folders within your C:\Users...?
Can it be moved to another drive/partition as my 'C:\' drive is getting fairly full!!!!
In the Windows version of iTunes you can select where iTunes stores its media by going to:
Edit > Preferences, select the Advanced tab and click Change to select a different location.
Can anyone tell me where I can find this 'Backup' as I would find it very useful!!!
Is it possible that, in your previous installation, you had created a backup of your iPod?