How to create two libraries in iTunes?

I have a question. I have an iPod and an iPhone, and I use Windows XP. How can I create two completely different libraries in iTunes? What is the best way? I am thinking of creating a new User on my computer (a new login), installing iTunes for that user, and using that separate user as the second iTunes library. Ideally the playcounts and stars that a particular file received in one library would also appear in the other. Will this work? Is there a better way to do it? How and where does iTunes store playcount data and star ratings? They aren't in the ID3 tag of the file, are they?

You may answer now, or read on for more info on my setup and my reasons for asking:

I currently sync my iPod and iPhone manually because I have so much music. There are two main problems with my current setup:

1. On-The-Go playlists don't sync, they just vanish if I plug in the iPod. I have to manually transcribe them into iTunes. Automatic syncing is not an option - I have way too much music. I hate unchecking the check boxes, too.

2. I accidentally put redundant copies of songs on my iPhone. This is especially wasteful considering how little storage the iPhone has. I cannot remove the redundant copies because I actually want them on my home computer, I don't want to uncheck them or anything.

 

Alas, I have no Option key! I am living in the dark ages with Windows. I do have a shift key, and that did the trick nicely. I don't think the playcounts and stars are going to work. If I wanted to do some serious programming, I might be able to make them work. I haven't actually looked at the XML file, so I don't know how impossible that would be.

To Iamtherealwoody, the playlist strategy is what I have been using. If you sync playlists only, and not everything, On-The-Go playlists will not sync. It is a lacking feature which has been discussed at length on this very forum.