3 devices-one computer-managing playlists

We looked thru the other postings and can't seem to find this one answered.
The Apple store in Annapolis couldn't answer this either.
We have one computer, (2) Ipod Nanos and (1) ITouch, all using one Itunes and one Library. We're having problems manipulating playlists and the songs included.
We have playlists titled: Classical, Rock, Movies, BlueGrass, JacobsFavs, DaddysFavs, MommysFavs, MommyWorkout, DaddyWorkout. etc....
Let's say we have a song called "Yoga"
"Yoga" is located in more than one playlist: if the song is checked in one playlist, it's checked in ALL the playlists it's located in. If it's unchecked in one playlist, it's unchecked in ALL the playlists where it's located.
We manually manage the playlists.
What are we doing wrong? is there a better way to manage the playlists and songs?
Do we need to set up multiple users on the computer, each with their own Library?
I use multiple databases at work along with other employees. We all have access to the data and we can 'pick' off the files we need into our home directories WITHOUT changing the data in the database.
Any help you could offer would be appreciated
Thanks!
d

*checking/unchecking is not the best way to manage playlists when you have multiple people/devices using the same ITunes Library on a single computer/single user.*
That would certainly be my opinion, others may disagree.
*a song needs to be listed ONCE in a Library on ONE playlist only? Unless you want it listed in multiple playlists for convenience sake (Oh yeah I want that song in YOGA and CLASSICAL).*
A song can be in as many playlists as you want. A playlist is just a set of shortcuts for want of a better word to songs that exist in your library. A single song in the library can be added to many playlists. (this is definitely an instance where unchecking can cause issues if the playlists belong to different people).
*Our current options based on Using Multiple Ipods on one computer are:*
*-create separate users on the computer with separate Libraries. This means figuring out how to import users' Libraries.*
That is an option, you can also create separate libraries within one Windows user account. To create or access a second (or more) library, hold down the Shift key in Windows when launching iTunes. In the resulting dialogue you will get the option to create a new library or navigate to the other Library.
Note: You can only have one Library open at a time and iTunes will default to the last library opened if you don't use the keyboard command to choose one. The new library will be empty until you add content to it. To get back to your original library you need to close iTunes and open it again while holding down the shift key, this time choose to open an existing library and navigate to its location. Multiple libraries can prove tricky when using multiple iPods, if you don't use the keyboard command you can risk syncing to the wrong library: Using multiple iTunes libraries -Windows
*do not use the checking option. Have the song listed only once. Use the Music Tab to select playlists for the device.*
I'm not sure what you mean by having the song listed only once. As I've pointed out one song can appear in many playlists so you only need one copy of it in your library. Each user can use whichever songs they want in the playlist or playlists which they are syncing to the iPod.

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