Workflow - Avoiding Duplicates

I'm trying to have Hazel move files from a folder into the iTunes media folder "Automatically Add to iTunes" folder. I'm running a test on one folder and notice it's creating duplicates even though I've selected "replace" and "throw away if duplicate" in the option window. Is this not a Hazel issue but iTunes? Any suggestions on how to avoid creating duplicate files? If there is no way to accomplish this using the iTunes organization folder, here is next question. I have a folder called "MP3" that has artist and album folders and inside of this folder an iTunes Media folder with a "Music" sub-folder that has some Artist folders that are duplicates, but albums that are unique. What rule can I create to have Hazel sync the two folders so that Hazel knows to copy only the album folders that don't exist under the iTunes Media--->Music folder from the folder that is two depths higher?

Hazel only deals with duplicates in the same folder on the filesystem level. If you have duplicates in the library in different locations then Hazel can't do much about that.

If you want to sync the folders, I'm assuming the files in those folders are identical? If so, you can use the sync function which will only copy over files that are different. Search for the forums for examples on how to use the sync action.