My daughter has purchased music through my account and would like to start her own account and transfer her purchases there.  Can this be done?

Is there any way of moving her music to her new account/computer?  Will she have to re-purchase all of her music in order to accomplish this feat?  I have no problem dis-associating this music with my account.  Can it be done?

Syncing to a new iTunes library or computer will erase her ipod. Only if you back up manually before syncing, you can restore your device from that backup again. A manual backup does not include the sync process.
Do this:
Disable autosync in iTunes, connect her ipod to her new computer and right click on it in the device list and choose backup. iTunes will backup your device without syncing.
Transfer your purchases the same way, choosing "transfer purchases" this time.
When you connect her ipod for the first time, all media content will be erased. But you can restore your settings and app data from your manual backup afterwards.
Don't forget to set up at least one contact and event on your new computer to be able to merge calendars and contacts when you sync the iPod for the first time.
Music is one way only, from the computer to your device, unless you bought the songs in itunes and transferred your purchases.
There is 3rd party software out there, but not supported by Apple, see this thread: http://discussions.apple.com/thread.jspa?threadID=2013615&tstart=0
About backups and what's saved:iTunes: About iOS backups
How to back up and restore:http://support.apple.com/kb/HT1414
How to download apps for free again:http://support.apple.com/kb/HT2519
Saving other data is also described here. How to back up your data and set up as a new device

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