as gotza said, applications will not need to be installed on both users.
Any data, however, will have to be stored in a shared folder to be accessed by both users. There is one by default in [local HD]/Users/Shared (where [local HD] is whatever you have named your Mac OSX partition). Whatever you store in this directory will be available to both users.
If you would prefer to not store a bunch of stuff there, you can also set a different folder to be a "shared" folder by selecting it, choose "Get Info", and at the bottom are your sharing options. You can choose on a user-by-user basis, or set it globaly. You can also choose between Read-Only, Write-Only, or Read & Write.
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