I've had family sharing for quite a while now (maybe a bit over a month and a half?)
you need to exchange accounts for a few minutes in order to authorize eachother's machines to be compatible with family sharing.
No, only the person who wishes to share their library needs to do it. They need to log in on the other person's computer; I suggest using Teamviewer to do this.
also both users need to be in beta in order to be able to share libraries, otherwise it does not work.
This is incorrect; You only need to be in beta to share your library with another person; The person you're sharing with does not need to be in the beta.
Wait, so this doesn't have to go both ways?
I mean, you can share yours with people but not expect them to share back if you want?
Yes.
I want to know how this works.
Does it work on the normal steam client or is it only for a select few beta testers?
Normal steam client; But the option is disabled unless you're in the beta.
Is it easily controlled, so liek the master account can hault all access from another user, (An example with family: Your child gets in trouble, so you "ground" him from steam by cutting off access to your games, but can be reopened at any time)
Yes; There's a dialog that looks like this:
From there I can revoke access whenever I please.
Will there be a sort of tab menu where you can switch between users games you are sharing with, or will games be auto-added to your library until connection is cut off.
There's this:
Can my friend play one game on my account and i play a different one at the same time, or does it kick them off no matter what?
If the library owner starts a game while a shared user is playing a game, they'll be kicked off after 5 minutes; If a shared user tries to play a game while another shared user is playing one, they'll have to wait.
Apparently you edited while i was typing this;
My dumb. I read the FAQ.
forget. Wasted time :c