2 iPhones, 2 accounts, shared music folder

So my wife was using our Powerbook to sync all of her information. Given that the powerbook is not intel based, she could not upgrade to iTunes 10, and could not update her iPhone with the latest software.
We have opted to have her switch from the powerbook to my dell. That being said we would like to have one shared "music" folder so that both accounts share the same iTunes library. The only thing of concern to me is that I don't want our phones to sync the same app data. For example, we each have the same app, but with different user settings. If we both sync off the same shared music folder will we lose our individual app settings and receive the same "app file" so that we lose our unique app settings and data?
Any help is greatly appreciated.

Given that the powerbook is not intel based, she could not upgrade to iTunes 10, and could not update her iPhone with the latest software.
iTunes 10 does not require an Intel Mac.
http://www.apple.com/itunes/download/
+Mac computer with an Intel, *PowerPC G5 or G4 processor*.+
For example, we each have the same app, but with different user settings. If we both sync off the same shared music folder will we lose our individual app settings and receive the same "app file" so that we lose our unique app settings and data?
No. 3rd party app settings and data created and stored by an app is not stored with or synced with the copy of the app in your iTunes library. 3rd party app settings and data created and stored by a 3rd party app is included with your iPhone's backup. iTunes creates and maintains a separate backup for each device.

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