Opinions please: Multiple libraries

Hi,
Please give me your opinion if you have some experience of libraries
What's the best solution for multiple libraries. I can see there are a number of solutions.
I have not the money to buy them all or spend ages trying them all out, and I don't know even if I should use them. Should I stick to iTunes only options?
Some involve buying software allowing user menus, but I would like to know any disadvantages that anyone has come across.
Here's my requirements:
All libraries stored on my NAS unit.
I want to create a library containing all my music.
From this I want to create 4 libraries that are subsets of the main library which will allow me to simply select aone library at a time for my iPhone.
Finally my wife has her music on her laptop. Can I copy her protected files into my library and get her to authorise it - or is there a better way?
Thanks
Flobbyblob

+"Finally my wife has her music on her laptop. Can I copy her protected files into my library"+
Yes.
+"...and get her to authorise it"+
I don't know; that is between you and her. But if you want to play protected tracks, the computer must be authorized to the account from which they were originally purchased.
+"...or is there a better way?"+
Yes. Don't buy protected tracks and then you will not need to worry about authorization at all.

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