Multiple iTunes Libraries, One Collection

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I apologize if this is covered often, but I looked around and didn't see anything.

We have a household Mac (a Mini, brand new with Lion). All our media files live on an external drive, including my main iTunes Library file. The Mini has the main account (mine) and I just set up a secondary account for my wife. I want her to be able to keep her own iTunes Library (that also lives on the external), but I want both libraries to draw from the same collection of media files. For example, if there is a Radiohead folder that holds all the albums I own and my wife downloads King of Limbs, I want the album to be saved in the same Radiohead folder, not create a second one someplace. Perhaps this is how it will work by default, but I want to make sure before I go messing with my very large collection.

Thanks in advance!
 

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