How to create Playlist for shared folder / paths

I have two systems at my home running with Windows XP, one is mine and second is used by my wife. Anyways, there is a Shared folder on my PC with all MP3 files (E:/My Music/Artist/Album/title.mp3) which is mapped by my wife as M:/ on her computer. Here I wanted to know how can I create the playlist ( paths!) for the album and the artist in the respective folders so that these can play from both my computer and my wife’s as well?

Please help.

Well here in this case I want you to use Media center because if you are uploading the playlist in Mylist of media center then it will be automatically shared with the nodes in the network. Hope this will help you to solve the issue here.