Sharing iPhoto and iTunes files among users

Hello,

I've tried to search for solutions to my problem but can never seem to find a step-by-step procedure that I can follow. I just bought an Apple for the first time and can't seem to figure this out.

We have a new imac with three login accounts. However, I would like to share all iTunes and iPhoto files among all three accounts. I tried going to preferences/sharing, but that doesn't seem to work. I read somewhere that you can put your library folder into a shared folder and then redirect everything to that... but I have NO clue how to do that!

Any idea's? All help will be much appreciated! This is an entirely new system that I am trying to learn so I don't know much.