Probably me doing something fundamentally wrong but the iCloud functionality is a pain in the arse.
There's a few songs I've purchased from iTunes but have them stored on my local disk, yet iTunes is showing the item twice, one for the local version and one for the iCloud version.
Had the same thing with a TV Show I downloaded, but only on a few episodes mind, and the only way to sort it was to download the item from the cloud again, rename it so iTunes couldn't find it andre-link it to the original copy. Right pain in the fucking arse.
Does look lush though as HF says. Very clever how it adjusts the colours based on the album artwork.