first, there's a new version of itunes. itunes 2.03 is available free at the apple site (look under software).
secondly, you might want to upgrade to 9.2.1 too. the requirements listed by apple say you can use 9.1, but recommends 9.2.1. the upgrade is free; you can download it at the apple site also.
as for importing stuff, i've had mixed results with dragging and dropping folders of mp3's into itunes. have you tried going under File menu-->add to library instead of drag and drop? you might get better results...