Thanks for the reply. This is helpfull. I have another question. My iTunes account has different songs on it than my wife's iTunes account. If I turn on Home Sharing will it combine the two accounts? If so what if I don't want all her songs on my iPhone/iPad?
I don't use Home Sharing nor do I have a setup to test your question. I believe it may be possible but I don't know what you need to do. I don't know that you can combine accounts, but you can see the other account. I think I read that one person at a time can share from a given account. She would need to turn on home sharing on her computer while you would need to turn yours off, but I'm really not sure.
You can each share your libraries on the network via the Sharing options in iTunes preferences.
Wish I knew more, but this is sort of all I know about home sharing.