Alomg with everyrhing else that is going on in the background of your WHS, the iTunes lib is being updated. It won't happen in the 5 min refreash period, perhaps a day or two depending upon the number of songs you have.

First go to the Shared Folder for Music - under the User Acess Tab, make sure that the desired user has read/write permissions.

On the PC with the iTunes library, connect the iPhone / iTunes player and look on the left for the iTunes Media Server (or what ever you named it. There you will see all of your music files. In the iTunes menu select Add Shared Library or Shared Folder and poin to this shared music folder.

Now, all of your music will be available for iTunes.

I rip all of my music from CD to the Shared Music Folder in Mathematically Lossless Format (30,000 to 45,000 kbs per track. The iTunes Server automatically converts all of these tracks to much smaller files for my iPhone.

Betavirus
 Thanks for your suggestion but unfortunately like MrSpontaneous, the Mediasmart link on the left bar does not show up to begin with.
I have enabled the shared folders options within itunes but that does not do anything as far as the itunes and mediasmart combination is concerned. I did some more research and perhaps here is something interesting from the crunchgear website. It suggests that itunes 9 and and the mediasmart homeserver do not play well together.

http://www.crunchgear.com/2009/09/11/help-key-install-itunes-9-on-windows-home-server/

Perhaps its not good to upgrade in a hurry!

Hey guys,
Did you ever get this issue fixed?
I am having the same problem and have not been able to fix it.
Any help would be appreciated.
Thanks