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I don't allow iTunes to copy files to its media folder and use my own folders instead. How can iVI work for me?

No problem. On the Converted File tab in iVI's preferences change the Destination for Converted File drop down (there is one under each of the Home Movie, TV Shows and Movie tabs) to your preferred home for the final file. When you do this two new options will appear. Select the import into iTunes option and deselect the Delete option. Your files will now live in your prescribed directory and iTunes will point to that location. 

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