Multiple Libraries in iTunes 7 (Windows)

Another whinge about iTunes 7!
The multiple libraries feature in the Windows version (I don't know about the Mac version) is very poorly implemented and, quite frankly, useless.
When changing libraries in iTunes 7, the preferences for the new library are not copied across; in effect, iTunes 7 retains the preferences for the previous library. This becomes very annoying if the user has libraries with different preference settings, as I do. I have two libraries, one of which is located on the hard drive of my PC and the other on a network drive. The two libraries have different preferences, ie music location and the encoder used when importing files (one lossless and the other AAC).
Whenever I switch libraries in iTunes 7, the preferences for the previous library are retained. Consequently, when I select a new library I have to change the preferences to match those required for that library. Otherwise, iTunes 7 updates the new library according to the preferences for the old library. Very frustrating, I can tell you!
I have now removed iTunes 7 and restored iTunes 6, along with a third party library manager until such time as Apple comes up with a decent way of managing multiple libraries.
  Windows XP  

No, it's the same Windows XP user account, but I have two separate music libraries - the music files in library are in a lossless format, while those in the other are in AAC. For convenience, I wish to keep the two libraries separate.
In iTunes 7 it is possible to have separate libraries - start iTunes and hold down the SHIFT key (Windows) while the program starts. A dialogue box then appears where the required library can be selected. However, as far as I can tell, it's not possible to have a different set of preferences for each library.
Say the preferences are set up for my lossless library, which is located on a separate network drive. If I then make the AAC library active and open iTunes, iTunes reindexes the library according to the settings for the lossless library and I end up with the AAC library full of lossless files. I've tried unchecking various things in the preferences box, but I've had no luck fixing the problem. Thanks for your suggestion - I have already reported the problem.
The whole thing is a rather inelegant way of managing multiple libraries in iTunes. Surely the Apple developers can come up with a way of doing it from within iTunes??

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