How do I work with a git repository within another repository?

The key is git submodules.

Start reading the Submodules chapter of the Git Community Book or of the Users Manual

Say you have repository PROJECT1, PROJECT2, and MEDIA...

cd /path/to/PROJECT1
git submodule add ssh://path.to.repo/MEDIA
git commit -m "Added Media submodule"

Repeat on the other repo...

Now, the cool thing is, that any time you commit changes to MEDIA, you can do this:

cd /path/to/PROJECT2/MEDIA
git pull
cd ..
git add MEDIA
git commit -m "Upgraded media to version XYZ"

This just recorded the fact that the MEDIA submodule WITHIN PROJECT2 is now at version XYZ.

It gives you 100% control over what version of MEDIA each project uses. git submodules are great, but you need to experiment and learn about them.

With great power comes the great chance to get bitten in the rump.

Consider using subtree instead of submodules, it will make your repo users life much easier. You may find more detailed guide in Pro Git book.

If I understand your problem well you want the following things:

1. Have your media files stored in one single git repository, which is used by many projects
2. If you modify a media file in any of the projects in your local machine, it should immediately appear in every other project (so you don't want to commit+push+pull all the time)

Unfortunately there is no ultimate solution for what you want, but there are some things by which you can make your life easier.

First you should decide one important thing: do you want to store for every version in your project repository a reference to the version of the media files? So for example if you have a project called example.com, do you need know which style.css it used 2 weeks ago, or the latest is always (or mostly) the best?

If you don't need to know that, the solution is easy:

1. create a repository for the media files and one for each project
2. create a symbolic link in your projects which point to the locally cloned media repository. You can either create a relative symbolic link (e.g. ../media) and assume that everybody will checkout the project so that the media directory is in the same place, or write the name of the symbolic link into .gitignore, and everybody can decide where he/she puts the media files.

In most of the cases, however, you want to know this versioning information. In this case you have two choices:

1. Store every project in one big repository. The advantage of this solution is that you will have only 1 copy of the media repository. The big disadvantage is that it is much harder to switch between project versions (if you checkout to a different version you will always modify ALL projects)

2. Use submodules (as explained in answer 1). This way you will store the media files in one repository, and the projects will contain only a reference to a specific media repo version. But this way you will normally have many local copies of the media repository, and you cannot easily modify a media file in all projects.

If I were you I would probably choose the first or third solution (symbolic links or submodules). If you choose to use submodules you can still do a lot of things to make your life easier:

1. Before committing you can rename the submodule directory and put a symlink to a common media directory. When you're ready to commit, you can remove the symlink and remove the submodule back, and then commit.

2. You can add one of your copy of the media repository as a remote repository to all of your projects.

You can add local directories as a remote this way:

cd /my/project2/media
git remote add project1 /my/project1/media

If you modify a file in /my/project1/media, you can commit it and pull it from /my/project2/media without pushing it to a remote server:

cd /my/project1/media
git commit -a -m "message"
cd /my/project2/media
git pull project1 master

You are free to remove these commits later (with git reset) because you haven't shared them with other users.