Will Bridge work if I don't use the iTunes setting where tracks are copied into the "iTunes Music" folder upon import?

I prefer to just have music library (Beatport Downloads), but Bridge isn't working for me. It sees all the music but says "track not found" when I try to play it. I've directed it to the Beatport Download folder, but it still doesn't work. I'm curious if it has to do with the fact that there are no tracks in the iTunes Music folder. Bridge Settings has a part where it asks where the iTunes XML document is. I figure this is for playlists, but I'm wondering if this is also mean to direct to where the music is stored.

Thanks!