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From There you are ready to drag your image into itunes. Open iTunes and I usually just play the song so I know I am on the right one. Make sure you have your album cover showing in iTunes. If its not click on this arrow
found on the bottom tool bar of iTunes. You will now see a square box that says, "Drag Your image here". With both windows open click and drag your image from Photoshop into the album box. There you go your image is in iTunes.