Set my wifes account up with mine.  Now all our data combines.  How do I set up an account just for her so we don't share all our contacts and such??

Set my wifes account up with mine.  Now all our data combines.  How do we set up her own account so we don't share all contacts and such??

There is only one solution. Each user must have their own separate user account. All of their respective data would be contained in their separate user accounts. This also means each will have a separate iTunes Library. If you all use the same third-party apps, then each will have to purchase their own copies under their own Apple IDs. Some data sharing is possible. See:
iTunes- How to open an alternate iTunes Library file or create a new one
iTunes- How to share music and video
iTunes- How to share music between different accounts on a single computer
iTunes- Setting up Home Sharing on your computer

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