Fedora :: Creating Local Shared Directory

I have recently installed Fedora 12 on a desktop PC and as my first experience of Linux, I am really impressed. I have now installed several packages and have reached a point where I would like to share the PC with other user (family members in the same house).My question seems so basic I am almost embarrassed to ask it but could some one explain the best way to create a local shared directory that could be used to store files accessible to everyone (e.g. music, photos, videos, documents etc.)There will be three users and as it is a family PC, they will all have full access.

Reading posts from various forums, I am little confused about what is the best way to proceed (i.e. what is Linux best practice). The simpler of the two methods is to simply make the directory using the mkdir command, followed by the chmod command to assign full access rights. Fore example if the local shared directory is called 'share'. The alternative approach assigns a group, a group administrator etc and then adds users to the group.