Can you have two iTunes libraries on one computer?

If you have the latest iTunes and use XP: hold the shift key down when starting up iTunes and you will be asked what library you want to use (or if you want to create a new one) :) I have one library with lossless files (classic) and one for my daughter's MP3 files (Nano)

OR

Two different profiles!

Alternate answer:

I followed these exact directions and it didn't work. I was asked whether I wanted to replace my iPod's files with the new library contents (which didn't exist yet), or to place my ipod's files into my new library. I chose the second and nothing happened at all. The process simply stopped and nothing happened. Way to go Apple, way to go.