After much hardship and turmoil I have finally found a working way to move your entire music library to a new folder and keep your play counts and ratings. I write this thread in hopes that this helps others with the same goals.
First make sure you backup your media library folder usually located in C:\Users\(User Name)\App Data\Roaming\Winamp\Plugins\ml\. App Data is usually a hidden folder so if you don't see it go to Organize->Folder and search options (This is in Windows 7) and go to the view tab and check show hidden files, folders, and drives. I back up my entire Winamp folder in the App Data folder just in case but this for me is 4 gigabytes and its totally optional and not necessary.
Note that I am not responsible for any damage or loss of your media library through these steps, although I think they are pretty safe. I did recommend you to back things up first.
In Winamp click Library->Export Media Database..., you will get an xml file. Save it somewhere and make a backup copy of it just in case. This took me a bit of trial and error so you should definitely make a backup copy of it.
Download this hex editor program (its free):
Now you can move your music library (or individual files if thats the case) to its new destination.
Open the xml file in XVI32 and click Search->Replace...
Now in the Find section check text string and type in the location of your music library. Use "%5C" without the quotes to represent "\".
Mine was C:%5CUsers%5C(My User Name)%5CMusic
In the replace field check text string and type in where you moved your music. Be careful because it is case sensitive and make sure you get all the spaces. You can double check the file path by going to where you moved it and clicking the address bar in windows 7.
Click "Replace All"
Exit XVI32 and it will ask you if you want to save changes click yes.
Go into Winamp and click Library->Import Media Database... and open the newly edited xml file.
Use Alt+3 to look at a songs info and see if its in the new location then close the dialog box and double click that song to play it to see if it works. If it doesn't try double checking what you replaced in XVI32 to see if there are any typos.
If it works click Library->Remove missing files from Media Library... to get rid of the old file path database.
If anything went wrong you can restore your media library by using the ml folder backup and placing it in your App Data\Roaming\Winamp\Plugins\ folder, and you can open Winamp and go to Library->Export Media database... to try again.
And there your all done!
If you want to move individual files or folder within the music library rather then the entire music library you can go into the xml file and search for them individually rather then using the replace method. Then make sure just to move that specific folder rather then the whole thing.
This is untested with a video library but I'm sure it would work the same.
I still do not know how to fix playlists like this but when I do I will edit the thread to include this.
If anyone has any advice of other methods or noticed any typos or incorrect information or has any troubles please post below or PM me.