How can I have separate Libraries in iTunes for my Children?

Hi all,
I have bought my children iPod Touch devices for Christmas this year and would like to set up accounts and libraries for each of them (3 in total, one for the Mrs!) so I can sync them and put some games and apps on ready for use.
Is it possible to have multiple Libraries on one computer? I know I can open iTunes accounts for each of them but they're not at that stage yet but will - at some point - require different games, apps and whatnot.
I'm sure a friend of mine has a different iTunes library for him and his wife on the same computer and they don't have any sync'ing problems at all...
I hope someone can help!
Dave.

You can likely set up different user accounts on the computer and have a library in each account.  I use a Mac so I can't be more specific on user accounts on Windows.
Alternatively you can set up different libraries inside a single user account.  I'ts a bit cumbersome switching between them though.  You can create and switch betwween libraries by holding down the shift key while starting iTunes, then guide it to the library you wish to use.
Another possibility would be to sync just playlists, not everything.  While there are ways to share items between libraries using other methods, this one has the advantage that all the things are in one library and each person makes their selection.
iOS: Syncing with iTunes - http://support.apple.com/kb/ht1386
As for AppleID and accounts, you might consider setting up sooner rather than later.  The main problem with Apple purchases is you cannot transfer them between accounts.  If you give a child a song for a birthday and purchase it on your account, it is forever tied to your account.  If in 10 years your child wants to take with them to college you'll have to give them access to your whole account or always be authorizing their devices which you may not wish to do.

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