Sharing the same iTunes library from different Macs/Pcs to Time Capsule

Hello everybody,
I have just bought a new Time Capsule (2TB) internal storage and an external 2TB Western Digital that i have also connected to the time capsule just fine.
The Time capsule is supplying internet to a ps3, apple tv, sony bluray player and a satelite reciever (equivalent to Sky in UK). It is actually setup on the second floor and is acting as a extension for the main network and is working perfectly.
Now I have about 5 Pcs at home with different users and 2 mac laptops (Kids wife etc.. so different users).
My ultimate goal is to setup one itunes library on all the laptops that are present on the TC.
What I did was I copied the Itunes folder (my main precious itunes library) and pasted it on the TC hard drive.
Then i tried opening it from an itunes of one of the laptops (a macbook), I opened itunes while holding options button and choose the library to the wirelessly shared itunes file and it showed up perfectly like the exact itunes with everything in it including play counts etc..
but when i want to open a song it doesnt find it and i have to pinpoint location in order to play the song.
Its just not possible to do that to every single song as my library is about 120 gigs of music. It would take years to do tht for every song.
When i usually find one folder itunes asks to find all of them automatically and when i press yes itunes stops working.
PS. Im trying this on one laptop now as a trial in order to see how this works. The main library is backed up and all safe n sound. Also i would like to say i changed the itunes library folder to the time capsule on preferences of itunes.
Is there anyway anyone could help me? Any different methods to do it? Please we can discuss whatever ideas ud like to include.
Thank you

Check this article for advice about sharing iTunes libraries.

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