Movie2iTunes analyzes the file name of the video files and if it detects a TV show sets the right video kind, season and episode accordingly.
Just drag'n'drop one or more movie files -or folders containing movie files- on the droplet icon.
A file reference in the QuickTime media link format is created (a few KB per movie) and the reference file is then added to the iTunes library. The original movie files will not be moved or altered in any way.
On the first launch of the droplet you have to select a folder for the "QuickTime media links" - this folder is for internal use only and can be anywhere on your hard disk.
If you want to set a new location for your "QuickTime media links" folder, double click on the droplet in the Finder to open the options dialog.