Since iTunes v.7.7, the shared library has not been compatible. This is a change by iTunes, not LW. Even older versions of LW have same problem.

So you say it still works for LW 4.8 ? Interesting finding.

No solutions yet. If you downgrade iTunes, you risk making the older iTunes unable to open the newer version iTunes music library.

But question is, do you really need it?

You have a Recently Added playlist in iTunes which more or less has a similar effect.

To add songs properly to iTUnes, see How to transfer music to my iPod (& iTunes) {click on link}