home sharing and ipad3 music problem

[Meenie]

I'm having a couple of problems with getting my music on my ipad.
Problem 1: (This before I learned about "home sharing") I had a terrible time getting the music I had on my computer into iTunes.
I looked it up and all the directions said to move it to my iTunes library - I don't have a folder called "library" I have a folder called "media" and in side that a folder called "music"
I moved a few songs to the "music" file, but they didn't show up on my ipad.
Then I right clicked on each song and there was an option "open with iTunes" and when I did that, they showed up on my ipad.
But does that mean they are physically ON the ipad? I don't want to clog up the memory there, I wanted the music to stream from iCloud.

Then after a lot more hunting, I found a site that talked about "home sharing" and streaming music through iCloud via Home sharing.
I turned on "Home Sharing" but the instructions again wanted me to put things in "library" (don't have), and wanted me to open "Itunes Preferences" - won't open.

How do I make this streaming thing work? Can I do it without standing on my head?

 

[willerz2]

If you have media files on your PC that are supported by iTunes, you can simply drag and drop them into your iTunes library on the left-hand sidebar of iTunes and stream it off of there. If you don't see a left-hand task bar (on iTunes 11), simply press CRTL+B then CRTL+S. You might have to tinkle with the Home Sharing settings as well in iTunes