ITunes sharing NOT sharing

Everywhere I read that iTunes can share libraries with other computers over a network. It protects the file by streaming it so it can only be listened to.
However, I can only share unpritected AAC files, my iTunes purchases cannot be listened to by another computer on the network. It pops up a window saying that I must authorize the computer. (Which I can't do since I already have 5 authorized...2 at home, 2 at main office, plus laptop.)
Is this how it really is? Because it doesn't mention that anywhere on the apple site.

Yes, that's how it works
authorization:
http://docs.info.apple.com/article.html?artnum=93014
sharing:
http://docs.info.apple.com/article.html?path=iTunesWin/7.5/en/15333.html

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