How can I Manage Multiple Users?

My wife and I both want to organize and edit our digital photos with PSE10. Up until now, I have managed all of our photos by myself, and I have synchronized all data on both of our computers (and backed up all of our data to an external harddrive). Now that my wife also wants to organize and edit our photos on her computer, I am finding it difficult to synchronize the PSE Catalogs and photos on our two computers. So, I am looking for a better procedure.
Should I (and can I) keep my PSE Catalog & Photos on:
(1) an External Harddrive (which would be connected to only one computer at a time, while that computer user is organizing and editing photos), or
(2) on a Home Network location where both users could access the photos for organizing and editing (with a "lockout" for photos which are being edited by the other computer user)?
Are there other good or better procedures for managing multiple users of PSE?
My computer is running Win7 Home Premium 64-bit.
My wife's computer is running Windows Vista Home Premium 32-bit.

Thank all of you for your replies.
Re SOFTWARE CHOICES:
I decided that my wife and I will each use different software on our different computers.
I decided NOT to upgrade my wife's software from "Windows Live Photo Gallery" (WLPG) to "Adobe Photoshop Elements 10" (PSE). After a detailed discussion of my wife's wishes, I discovered that she only wants to (1) move our pictures into folders, (2) cull the pix, and (3) create "Album" folders (with only our most memorable pix) to be printed as 8.5" x 11" pages for the Albums. She wants me to crop, edit, add captions, and print the Album pages. See the image at the bottom for our current Photo Mgmt Plan.
I will continue to use "Lightroom" (Lr).
Re SYCHRONIZATION:
I decided that we both can use the same picture files. I use "GoodSync" to sychronize files between my computer and my wife's computer (and between my computer and my backup HDD).
My wife's "WLPG" does NOT appear to use a database. My changes (including "Keyword" edits or adds) show up in her "WLPG" program, when picture files have been changed by myself in "Lr" and sychronized with her computer.
After my wife adds folders and/or changes the folder contents, I sync her computer with mine. I open her folders (which are now also on my computer) in "Lr", and "Import" any of her new and duplicate pictures into "Lr". Surpisingly and thankfully, the pictures that have been moved to a new folder by my wife do NOT show up in "Lr" in the previous folder (i.e. I do NOT have to find and delete any "Missing" images which were in the previous folder location).
Re MULTIPLE USERS OF A DATABASE:
I do not need to use this now, but I read that "Lr" is designed to work with the "Lr" database (and pictures) on an external HDD.
Thank all of you again for your very helpful replies.

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