I have one apple ID for multiple devices in my family.  I'd like to keep it that way for itunes/app purchases.  I would like a simple step 1, step 2, step 3 response on what I need to do to separate all other features like imessage, contacts, emails, etc.

I have one apple ID for multiple devices in my family.  I'd like to keep it that way for itunes/app purchases.  I would like a simple step 1, step 2, step 3 response on what I need to do to separate all other features like imessage, contacts, emails, etc.
I have been reasearching how to do this on the internet, but I haven't found an easy explanation yet.  My family is going crazy over each others imessages being sent to others in the family and not being able to use FaceTime because of conflicting email addresses.  I have read that if each person gets their own iCloud account, this would work.  However, I need to know what to do after I set everyone up with their own iCloud account.  Do I make that the default email address to be contacted or can they still use their hotmail email addresses.  Any help- with easy explanation- would be much appreciated!!

We do this in my family now.  We have one account for purchases, so it is used to share music and apps (I think that is in Settings/iTunes & App Stores).  Each iDevice has this configured.
Then, each of us has our own iCloud account that is configured under Settings/iCloud.  That then allows us to have our own Mail/Contacts/Calendars/Reminders/Safari Bookmarks/Notes/Passbook/Photo Stream/Documents & Data/Find My iPhone/and Backup.  That Backup piece is pretty sweet and comes in handly if you replace your iDevice.  You can just restore from it.
So we all share the Apple Store account but we all have our own iCloud accounts to keep the rest seperate or things like you mentioned are a nightmare.
In answer to what iCloud does for you: http://www.apple.com/icloud/features/
Think of it as an internet based ("cloud") area for all of those items listed in my response.  What you need to remember is photo stream only maintans the last 1000 pictures so don't count it as a complete backup solution for your pictures.  Even though I rarely sync with a computer these days, I do still try to sync my phone with iPhoto (I have an iMac) so that I have copies of all of my pictures.  1000 may not stretch as far as it sounds.
Message was edited by: Michael Pardee

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