Sharing itunes library on 1 mac with multiple accounts

Question

I have got my daughter an iphone for xmas and created a new account on my wifes mini mac for her and want to share the main itunes account - i found this explanation (see below) but it still wont work?
I logged into my daughters newly created account then into the itunes account - prefs - look for shared music and....nothing!!!
i moved the "iTunes Music Folder" to the shared folder on my wifes account as described below.
Quit iTunes.
Locate your iTunes Music Folder. It is stored by default:
~/Music/iTunes or ~/Documents/iTunes/.
These folders cannot be accessed by other accounts on the computer. In order for other users to be able to access your music, you must move it to a publicly accessible location.
The Public folder in your home directory (~/Public), or to another folder outside your home directory that other users have access to, such as /Users/Shared. Tip: The tilde "~" refers to your home folder. For more information see Mac OS X: Using Your Home Directory.
Drag the iTunes Music Folder to a publicly accessible location. Important: Do not move the iTunes folder, the iTunes 4 Music Library file or the iTunes Library.xml file.
Open iTunes.
From the iTunes menu, choose Preferences.
Click Advanced.
Click the Change button.
Navigate in the Change Music Folder Location dialog to the location of your iTunes Music folder.
Click Choose.
Repeat these steps for each account that is sharing music with other users.
Note: If multiple users of a computer are storing music in one folder, duplicate song files are generated when a user imports music from CD that has already been imported by another user.
See the "To listen to another account's music files" section below.

Answer 1

Is your wife's iTunes account still seeing all the music ok in iTunes after you moved the music folder?
So what you need to do in your daughter's account is open iTunes, preferences, change the folder location to the same location as the shared folder so when she adds music it will be added to that folder if you want to keep everything in the same folder. To add all that music to her library you have to go to File -> Add to library... then navigate to and pick that iTunes Music folder on the shared directory.
iTunes will now add all the titles to the library. Since the preference is to use that same location for her library and the stuff is already there and organized, iTunes shouldn't make any copies or duplicates.
Keep in mind that what you have done now is you have two iTunes libraries accessing the same media folder. Meaning, that each account can have their own ratings, playlists, etc. but more importantly, each account does NOT know what the other account does, so if your daughter adds a CD to her account, it will go into the shared folder, but it will NOT automatically go into your wife's iTunes library. She would have to add it manually. Likewise, if one account deletes music from their library and tells iTunes to remove it to the trash, the other account will not know and iTunes will still try to access the file from the shared location even though the file is now trashed,
Patrick