Which is better? 2 iTunes installs wl one logon -or- One iTunes install with configured sync parameters?

First, I'm on Windows Vista ... not a mac ... and I do not own MobleMe ... my wife and I are already users of iTunes ... so we're talking about going from where we are now to where we want to be - which will involve changes. Thanks in advance for sharing ...
Currently, my wife and I have separate Windows Logons (on the exact same desktop machine) ... and we each have our own respective iTunes software installed on our separate desktops. She syncs her iTunes with her iPhone, and I sync my iTunes with my iPad and iPhone.
I'm interesting in merging our separate iTunes accounts into one for the purpose of not having to purchase duplicate apps that we each will be wanting in the future. (She doesn't know it yet, but she's going to get her own iPad for a surprise present.)
Looks like we are going to repurchase all her paid apps and place those into my account ... (she has fewer paid apps than I have, and that seems to be the least expensive way to start off.)
So... Here's my question:
Is it better to have her sign off permantly from her installed iTunes Account, and sign back on as "me" ... then download all the apps I have already bought that she wants? ( I.e. have two separate iTunes installations - both using the same login ID and password ... but personally configured to our liking).
... OR ...
Is it better to delete her installation of her iTunes Account and just start using mine ... again configured to her liking by checking which apps should install her her devices and which should be installed to my devices?
=============
Right now, she has her own music and I have mine ...
I'm open to any suggestions about PROs and CONs of each method ...
Thanks for sharing

I've done some more reading around and found posts talking about disconnect issues and that some of them were able to fix their issues with a newer router.
I started thinking about my setup... I have a fairly old Linksys WRT54G-L v1 router and the latest firmware is 4.3.0.12. I had previously been running 4.3.0.5 and last night before more tests I upgraded my router.
After upgrading the router I restored and re-upgraded Apple TV. Connected to iTunes and synced a movie. The streaming worked even if I rebooted Apple TV. I could close iTunes on the computer and restart it and the Library title would go gray and then turn back to white when iTunes comes back up.
Sounds like its working ...
However, when I restarted the computer... relaunched iTunes... the library title / link stays grayed out and no streaming...
SO after reading those posts about the potential for routers to be incompatible it got me thinking about how old mine is, 5 or 6 years old I think... and now I'm thinking about a Time Capsule or AirPort Extreme...
But before I do that, I'm going to update my Windows computer that hosts iTunes to XP SP3 and see what comes out of it. I have been putting that off long enough (actually thought I had already done it but I guess it just slipped me).
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