One iTunes account into two via home share

My wife and I have been sharing one iTunes account for years. We now have two iMac and so I'd like to separate into two accounts by retaining my original account on my imac and creating a new itunes account on her iMac. Her iMac is the one with the original account. Her ipod is tied to that computer and my account but I'd like her ipod tied to the new account so she can start making purchases that do not show up under my account and on my imac/ipad.
I understand that this process is not possible since apps and songs are liscensed under one user. However, I can easily redownload the apps my wife uses (15 or so, most of which are free). It's the iTunes store bought music I am unclear about.
I've done a bit of researching and have come to an idea that may work but I'd like feedback from those more in the know than I.
So, I'd like to run this process by all of you out there and ask if this sounds right.
My imac is all set with my account.
Wifes iMac: (Core i7, 10.6.8, current iTunes)
- Set-up wife's iMac with a new itunes account.
- Turn on that account in iTunes (authorize to computer to this new account)
- Home Sharing is on (purchased music on her computer under my account but not on my computer... I don't listen to Amy Winehouse)
- Connect her ipod (Touch gen 2) to her iMac and update as new account.
-this may delete all songs on her ipod but with home sharing can I just reload the music from the itunes library?
-Will I be able to load the store purchased music that resides on her imac onto her ipod touch with the new account on it?
- Or will she have to "authorize" each and every song as the ipod plays them???
– Redownload wifes previous free apps (downloaded under my name) under her new account.
The end result is I'd like any new purchases of songs or apps to be under her new account but still retain the music she purchased under my account on her ipod. Thus she can purchase on the device and it will update in itunes on iMac.
Does this make sense? Will this work?
Thanks,

I just got zapped by this crazy conundrum yesterday. I bought a used ipad1 thru EBay, for my son. He doesn't have home Internet or an up to date Mac so I set it up for him on my computer, unaware of the 90-day lockout rule. He owns a lot of iTunes downloads and I thought input would be faster to do it wired to my computer rather than via wireless direct onto his iPad, so I logged out of my account and into his. When I was done downloading his stuff I logged out of his account and got the 90-day lockout notice when I logged back into my account!
Thanks to all the posters here and other similar threads I learned what had happened, but until I got to this thread I thought I was locked out of ALL downloads, including new purchases. Thanks for the info about it just being for re-downloads. Fortunately, I am obsessive about backing up all new purchases in a master iTunes file. It just seems kinda stupid. What is the point in locking me out of things I already own? Anyway, thanks for the help!
Just tested on my computer and was indeed able to download a new album from iTunes on my account.
As far as sharing between devices is concerned, I have separate iTunes folders for each of 4 iOS devices I use, and simply use the "Add to library" feature in iTunes to copy anything I need to from one device's folder to the other. Works well.

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<http://support.apple.com/kb/HT6337>
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eye

eyeinit,
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http://docs.info.apple.com/article.html?artnum=300173
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One iTunes account into two via home share

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