Personal File Sharing has nothing to do with what you are trying to do,
That is for sharing files across a network.
All the users on a machine should be able to read and write to the Public Folder. This from the Apple Help file.
Begins
Sharing files with people who use your computer
Anyone who logs in to your computer can read or copy the items you put in your Public folder (except for your Drop Box folder, which only you can open).
Copy the files you want to share into your Public folder, inside your home folder.
To give a copy of a file directly to another person, copy it to their Drop Box folder (inside their Public folder), where only they can see it.
Ends
As you can see, there should not be any setting up to do to accomplish what you are trying to do.
This also from the Help file:
Begins
Opening someone's Public folder
Each person who logs in to Mac OS X has a home folder named for them inside the Users folder on the hard disk. Inside each user's home folder there is a Public folder that its owner can use to share files with others.
To open someone's Public folder on your computer, open the Users folder on your hard disk, then open the folder named for the person.
Ends
Hope this helps
P
I recently purchased my first Mac, a new iMac G5 w/ the new Tiger OS X. I'm very impressed so far and am trying to learn as much as I can to take advantage of Automator, et. al.
I set up my system with 3 users, me (as admin), wife (std. user), and son (managed).
I have been unsuccessful in placing items in either my ''Public'' or ''Public->Drop Box'' folders so that my wife can view the file from her account. I've gone into System Preferences (on both my account and my wife's) to ensure that Personal File Sharing is enabled.
I do note that if I use Finder to view my ''Public'' folder and do a control-click, I can bring up the Public Info menu, where I make sure that I have read & write permissions and am the owner of the folder and I've granted my wife's ''group'' read&write access also.
Again, I reciprocated in the same place on her account.
So, with all of that, why can't I drag and drop a file into either public or public->drop box and have the other account able to see it/access it?
Any suggestions/guidance would be greatly appreciated.

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic