Thanks for the response cookieme.
I just copied my entire music folder into the Leopard : Users : Shared folder (sucks, I don't get a music icon on this folder). Then, I went into iTunes and changed the setting to this locatio ( Leopard : Users : Shared : Music : ITunes : ITunes Music ). I tried deleting the original music folder in the home directory itself but Leopard wouldn't let me saying it was needed by OSX. So I just deleted everything inside of it and emptied my trash can.
I logged out of Leopard and logged back in to get my disk space back ( that didn't seem to work, it still says I have the same amount of disk space available). I saw that the Music folder in my home directory now had the Album Artwork folder back (though it just has the Local folder) in it.
I started up iTunes and noticed my Library was empty now, but iTunes still remembers that my iTunes music folder location is in the Shared directory where I said it was. Also, now after firing up iTunes, there's an iTunes Library file and a iTunes Music Library.xml file.
Not sure what's going on. I hope this is all that's going to be created in this Music folder in my Home directory. I don't want to have to constantly be moving music files out from my home music directory to my shared directory because iTunes keeps automatically importing/copying music.