It depends on how you add them to iTunes. If you used the Add to Library function within iTunes (Control & O) then it will copy the songs to its own library. Most other techniques require use of the Consolidation of Library function under iTunes' Advanced menu. See: iPod & iTunes Sticky (click on link) So double-check. Even use your search engine; Start menu>Search for files & folders.

As for your file uneraser, I'd suggest you try Drive C if that's where you were saving them to using LW.