Trying to add itunes account for new phone, sharing existing music folder

My wife's phone is already linked to the admin user account on my imac.
I have created another account to use for linking my own iphone 4 to.
I have tried the directions I have found so far for making the folder of our current music available to the new account: I moved the itunes media folder to the public folder, and went to the advanced setting in itunes in both the original account and in the new account, and pointed itunes to the newly located folder - music only shows in the original account.  Going to itunes with the new account doesn't let me see any of our existing music.
I have not yet added my iphone to the new account.  Will doing so help itunes set itself up?

You can have more than one account authorised on the same iTunes on your computer, but having/using just the one account us usually the best approach.
If you created a new iTunes account then you can log out of it on the iPad by tapping on it in Settings > Store and then log in with the old account. If you bought / downloaded any content with that new account then that content will be tied to that account and it can't be copied or transferred to a different one - so if you want to keep that content you will need to remember the account name and password in order to download any app updates to its purchases and in case you ever need to re-authorise the account again.
As long as you old iTunes account is authorised on the computer's iTunes (Store > Authorise This Computer) that you connect the iPad to (and your content is on your computer), you should be able to sync content from that account to the iPad.

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