Accessing a second iTunes library with an inherited iPod Touch

Question

Hi - My husband is now using my iPod Touch. It still needs to be synced to my iTunes account because of the existing apps, books and a couple of videos. However, he has his own iTunes account for music he purchases. A lot of it came from our old CDs, and is the same in both our music libraries, but there is enough divergence (plus our preferences with the same music are different).
How can I get his music library onto what is now his iPod, while maintaining the sync to my iTunes account?
We have both enabled Home Sharing, so we can see each other's library on the computer, but so far I can't figure out how to copy his library into a Playlist on my computer.
Or can he sync the iPod to both my account on my computer, and his account on his computer?
Help will be deeply appreciated.

Answer 1

Thanks, Jim. I can see how that would work. But is there any way to avoid intermingling the two libraries, so each doesn't lose its own properties (such as number of times played, rankings, etc.)? I was hoping there would be a way to just move all of his music directly into a Playlist.
After mulling over your answer, I found instructions for creating additional Libraries in iTunes, and created one to be for my husband's music. I have used the command File>Add to Library to populate it. However, the only place his songs still appear is in the shared library - the new one is empty. The only item in the bottom right-hand corner of iTunes is the one which is labelled "choose which speakers to use". None of his music in the Shared library can be dragged anywhere.
In Preferences>Sharing, the last line says Status: On, no users connected. And yet I can see his library under Sharing, and he can see mine, and right now my iPhone is connected to my computer as well.
Any further suggestions? There must be something I'm missing.
Thanks!