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It used to work then I formatted my laptop and from then its not been working properly so its probably something simple but like yourself I dont normally use iTunes for network sharing so its beyond me really.
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Again like the both off you i just play music with itunes =/ but i had a look on apples help forums and both off these came up with other people have similar problems
Open itunes and under the sub heading 'store' click authorize computer.
second where you tick the box saying look for shared library make sure you haven't put a password in there.