Select Preferences from the Edit menu to change the configurations for iTunes.
General Tab
Used to set the basic preferences for the progam, including what format & quality to use when importing CDs.
Click the Import Settings button, and:
For music CDs that require excellent sound quality use AAC at 256 bit rate, and select Variable Bit Rate (VBR)
For audio books select MP3 at 128 bit rate and don't select VBR.
Check the Use Error Correction option.
Advanced Tab
Used to specify the physical location of the music files as: \\NETWORK-DATA\Volume_1\Music\iTunesMusic
NOTE: The backslashes are important.
Select Keep Organized to have iTunes automatically maintain the music files in Artist/Album/Song order.
Select Copy Files to iTunes Media folder.