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Relocating iTunes and iPhoto Libraries
Both iTunes and iPhoto allow you to place your music/photo libraries anywhere you like.
Indeed, iPhoto allows you to have more than one library. More than one iPhoto library is especially advised if you have a huge number of photos that can be grouped sensibly (eg work vs personal), because performance will generally be better with a smaller library.
To move your iPhoto library, first copy it to the desired location. Then start iPhoto holding down the Option key; choose the desired library. When all is well, remove the original library— don’t get confused!
You can move your iTunes library also. iTunes will even do the job for you if you use its preferences. You can also have more than one iTunes library.