PAUL TAYLOR Hi, you dont need to have iTunes closed but as I think most people would recognise its not a good idea to modify any type of file while you are using it in another program , still I will take a look at this.
iTunes can automatically move files based on their metadata, but doesnt automatically scan files in folders, these can cause some issues for 3rd Party applications. But I have just finished a revamp of Jaikoz iTunes integration and this will be released later this week in Jaikoz 2.8.1.
(Version 2.8)