I am not sure what is going on. however, you have to realize something about Mac OS X permissions. The application itunes music Library probably appears in YOUR user account (~/Music/iTunes/iTunes Music) only. Other users do not have privileges to look at your music! This Apple Knowledge document will help you. Also try logging into the new User account and deleting the preference file ~/Library/Preferences/com.apple.iTunes.plist . Then run iTunes again, this may help.
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