Shared iTunes but Doubling my Music and all

I have one iMac but two accounts on it. I moved my iTunes library to my Public folder as a shared location so my daughter can also access the music and stuff there. I am using the same iTunes Account in both instances. However, from my daughter's account, all the albums show up with clouds on them and when I click them, they download another copy in the same folder adding a " 1" to the file (before the extension). How can iTunes recognize that the music and other stuff is already there? What must I do?

Running latest iTunes and Latest Public Beta of Yosemite with a recent iMac (2014).

Thanks,

Marc