One mac, two Apple id's and sharing iTunes media

HI everyone, i have already googled this but I can't seem to get a straight forward answer so here goes,
until recently my wife was the only one with an Apple ID as she has an iPod Classic and an ipad. We were syncing these with an old windows laptop. I have now purchased an imac and setup my own apple id and imported our entire music collection into my iTunes library.
I have created anorther mac user for my wife and i Now want to setup iTunes for her, but I would like to use the same music library? I need her to be able to make purchases under her Apple ID and download purchased music to the library so that I can see any new music also and vice versa . This means we would see the same playlists etc.
Can can this be done? or do I have to maintain two libraries?
thanks
mike

Suggestion by Turingtest for multiple users and one library - http://discussions.apple.com/message/9117622 - use smart playlists and tags to isolate groupings. How to use multiple iPods, iPads, or iPhones with one computer - http://support.apple.com/kb/HT1495 - Method #1 using separate user accounts. Method #2 using separate playlists in one library. Method #3 using multiple iTunes libraries. Chris CA's instructions on sharing one iTunes music library between multiple user accounts - https://discussions.apple.com/message/8974074 - Multiple users using a single library file - similar post at: https://discussions.apple.com/thread/3753008
Recommendation:  Make sure you have all your media backed up on a separate drive at all times.  Using multiple Apple IDs on one computer can cause problems when it comes to re-downloading media (see the "re" -- many people do not.  This does not apply to new purchases, just re-downloading or using iTunes Match).

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