Library sharing doesn't notice app updates

This is more of a iTunes feature request, or maybe I just don't understand how to make this work. I am using iTunes 9.0.2 under Mac OS 10.5.8 (and also 10.4.11 and 10.6.2, my wife's and daughter's machines) and have set up library sharing.
I have set it up so that if I buy a new app, it is automatically copied to the other libraries so it could also be used on my wife's iPhone 3G and my daughter's iTouch. I am reporting this in this forum because it seems specific to apps, and it would be lost in the noise in the iPhone for Macs group.
The problem is that if an app is updated, and I download it on my machine, it is not noticed as new when I ask it to show "Items not in my library", and the updates are not copied automatically, either.
Instead, if they check for updates, it shows that they have to download them from Apple, but if they try to do the download, it demands my iTunes Store password. I have previously authorized their machines against the 5 machines I am allowed, so they can put the apps on their devices, but they don't know my password.
What they have to do instead is to import the updates from my machine. I have instructed them on how to do this. However, it would be nice if iTunes just did the right thing.
Does anyone know a way to make it do the right thing that I have overlooked?

I hate to break it to you guys, but (definitely no gloating from me) mine is working OK. What this suggests, is that the store is not broken and the service is still working, but there could be a problem with something on your iPods (my iPhone is working fine as well).
I would start with a simple restart (if not already done) and work my way through settings (my Store settings show my account name and that I am signed in), including wifi.

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