First you need to have a storage device with sound effects connected to your local network and viewable from your computer. The libraries you wish to create must be in folders.
If you already have set up a local database via Networking in settings and you wish to add this database to your shared database switch on Duplicate local database. With this setting on, selected users will have access to a pre-indexed library with the possibility to add or delete material.
If you wish to have password protection on your shared network database switch on Password protect and select password.
If you wish to have control over the administration of your shared network database switch on Restrict editing. You can add admins if you wish to have several users in control.