Moving my iTunes library file to a new machine I have machine x (running Windows) that has my iTunes library file on it in the My Music folder.  All the media files in the library are on an external hdd.  I use machine x to sync my iPod on a regular basis, and have built up quite a history of songs played, recent songs, etc.

I now want to replace machine x with machine y (also running Windows).  Is it a simple case of 1) Installing iTunes on machine y; 2) moving the iTunes library file to the My Music folder on machine y and 3) then connecting the HDD to machine y (ensuring it has the same drive letter)?  Then launch iTunes.  Will machine y now know about all the song history (like play and skip counts, ratings...) as it was on machine x?  The thing I'm most afraid of is sync'ing my iPod on machine y only to have something go nasty wrong and I lose my history?

Any pointers?
Apple has a support document, iTunes for Windows: Moving your iTunes Media folder.

The answer to your questions is "yes".