Setting up a shared library for multiple accounts on the same machine

I am in idiot. I can't figure it out. This is exactly what I did.
1 - I set up multiple accounts on the computer. 1 for me and another for my wife.
2 - I loaded all the music into my account's public folder.
3 - I set the default folder in both hers and mine iTunes for this Public folder
4 - I then opened iTunes in my account and none of the songs were showing up so I dragged the folder into iTunes and it did its business. Now my account is all set.
Here are my questions:
A - Do I need to drag the folder into my wife's account iTunes as well?
B - If either of us add music when logged in, will it automatically update in the other iTunes interface or is there something specific that needs to (manually) be done?

Doing it the way you did, you each have your own iTunes library file and are using the same iTunes music folder.
Changes by one will not be seen by the other and any new music added by one will have to be added to the library by the other.
Also, if one deletes music, it will be in teh library for the other but it will not be playable because the other person deleted it in the iTunes music folder.
Launch iTunes, then immediately press and hold Option, then select *Create new library*.
Create one in Users/Shared.
Quit iTunes.
Move all your music into the new /Users/Shared/iTunes/iTunes music folder.
Login to your Wife's computer account.
Move all her music into the new /Users/Shared/iTunes/iTunes music folder.
On her account, launch iTunes, then immediately press and hold Option, then select *Choose existing library*.
Select the _iTunes library file_ in /Users/Shared/iTunes.
In iTunes, File -> Add to library and select the iTunes music folder in /Users/Shared/iTunes.
All the music will be there.
Quit iTunes and log out of her account and back into your account and launch iTunes normally.
All music will be there.
You should go to /Users/Shared/iTunes folder and right click - get info, click *Ownership & Permissions*. Set *You can* to *Read & Write* and set Others to *Read & Write*.
Click *Apply to enclosed items*.
Any changes (new/deleted music, ratings, playlists, etc.) by one will be seen by the other sionce you are using the same iTunes library file.
Only one person can have iTunes open at a time. If you use Fast User switching, one will need to quit iTunes before the other can use it.

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