Same problem here--often--with an iPod Touch gen 5 on iOS 7.1 receiving from iTunes 11.1.5 on an iMac on Mavericks. Selecting a song from a home-shared library to play causes the Music app to flip through song after song without playing anything. This happens regardless of whether I am selecting a song in album, artist, or song view.
I have to say that the problem is not consistent. For example, on about the fifth try this morning, Home-share is now playing successfully through my iPod. I had tried a number of things for previous tries -- restarting my iPod, checking network status, and, with each try, stopping the Music app completely, shutting down iTunes on the iMac, restarting iTunes, and restarting the Music app and letting the shared iTunes library reload. For some reason that escapes me, I finally had success.
In the past, too, sometimes playing from iTunes via Home-share on my iPod has worked and sometimes it hasn't. When it hasn't, the problem has always been this flipping-through-songs craziness. I've never experienced problems connecting with the iTunes library.