I have a new MP3 player that won't let me load my entire library then put the songs into folder by artist. So, their suggestion was to take my existing directory of music and set up folders for each artist. I had success in loading my music to my MP3 player! I also think it will help when I add new songs, I can add them right into the artist folder.
For mp3tag, my music directory is Local Disk/My Music then there are several artists files. Do I need to create individual directories by artist now that the songs are in separate folders?
I am pretty sure that decent players organize tracks by the metadata. Any folder structure should be irrelevant.
So, which tag fields have you filled? At least these should be:
ALBUMARTIST, ARTIST, ALBUM, TITLE, TRACK, perhaps YEAR.
Any structure that you create in your filesystem is mainly for you so that you find files more easily without the need to open a player.