Some people struggle with this and I am not sure why. Here is a step by step guide to getting your movies into iTunes.
Ross Craig's profile photoDavid Allen Wizardgold's profile photoMatthew Davies (daviesgeek)'s profile photo
Good video Dave. I noticed in previous version of iTunes I could drag my music over onto other music, now with iTunes 11 I find I have to actually drag my music onto the music directory like you did for the movie. 
Thanks Ross.

I still think that iTunes needs more of an overhaul than it was supposedly given with iTunes 11.
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