troubleshoot sharing problems

I am having major issues here. I have all my music on the server in my home network. I want to be able to play the music from my server, on my iphone 4s, while on the home network, via wifi. I turned on sharing in itunes on my PC, and in my iPhone 4s.

For the life of me, I can't get this to work. I add the network music folder on the server to itunes library, and it displays all the content within itunes on my PC. However, when I try to play anything on the iPhone, it either scrolls through what little (about 10%) of the music displays on the iphone when going to music, OR, when I go to Music > Shared > Mark's Library, it tries to load then says unable to start sharing.

Do I need to install iTunes on the server, and connect the phone to the Server, instead of my PC?

Help?