How do you Set up apple ID / iCloud for family?

I have an Apple ID along with an iCloud account. My wife also has her own ID and iCloud account. We have two young kids that are starting to enjoy games, movies, music, etc... Currently we have 3 iPhones, iPad, an iMac , and Apple TV.
Both my wife and I have been purchasing apps separately but would like to share the apps with all of the devices. (We are both currently using the same music and photo libraries). Even with a family account it is important that my wife and I maintain our own contacts and mail and iMessages.
I like the idea of setting up a new Apple ID but get a little confused when it comes to iCloud.
Should I create a new Apple ID for the family and use one of the current iCloud accounts for the family purchases? (or get a third iCloud account?)
If we go with this new shared account idea, is it possible to still load some of the apps that we have already purchased, or do we have to start fresh and re-buy the apps that we like under the new account?
Seeing the majority of apps have been purchased under my Apple ID, it may make sense to use my iCloud for all of the purchases but don't want to share mail etc with my wife or kids?!? I'm confused.
Thanks in advance for you help...
TY

I was having severe trouble with this myself until finally I decided to call Apple and spent an hour on the phone with a senior tech advisor. We finally figured out how to get it to set up Apple ID Authorization.
To do this First go into System Preferences>Sharing, then make sure screen sharing is turned on. From there, there is a list of authorized users with plus and minus buttons in the bottom left. Click the plus to add a new user, and then click New Person in the new window. After that a final window appears asking for User Name and Password. Simply put the name of the person you are adding with any password and click Create. From here go back to System Preferences and click Users & Groups. In this window you should see the new Sharing Only user. Click on them and set an Apple ID. After that test the new Sharing User by having the owner of the Apple ID connect to screen sharing or File sharing from their Mac. Keep in mind this only works Lion to Lion and they have to have their Apple ID set to their user on their own machine.
Good luck!

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How do you Set up apple ID / iCloud for family?

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