I am being baffled by the exact situation I think… I am not a MAC owner… I found this board from a Google search. I am running an HP AMD Dual Core PC & an Acer Netbook. I also have an iPod Touch 4. I am running a home network with a Netgear Router. The PC’s are connected via the router and talking to each other seamlessly, even using Windows 7’s Homegroup to share all the libraries on the PCs… I am running iTunes 10.4.1.10 - the latest updates installed.I have authorized both computers in iTunes. I have turned on Home Sharing on both computers. I am able to access via Home Sharing on my iPod Touch 4 and am able to stream from my libraries in iTunes.
Just like you have mentioned, when I activate Home Sharing, I get the “Shared†with “Home Sharing†listed on the left panel. I get the instruction that says to, “Use the same account, “[email protected]†when turning on Home Sharing for your other computers. They will appear below Shared in the iTunes window. Home Sharing is for personal use.†When I click “Done†the “Shared†in the left panel disappears. This happens on both computers.
Eventually, i was able to listen to my music from my laptop using my ipad 2! that works...i restarted both devices and when i checked my music on my ipad, everything i got in my laptop is on the ipad and i was able to listen to them. I still need to explore this feature..at least i know now that it works.