Manage multiple libraries in iTunes 7.
Apple slipped a nice bonus into their iTunes 7 upgrade: The abiliity to easily manage multiple music libraries.
Switching libraries is simple; hold down the option key on your Mac (or shift key in Windows) when you launch iTunes. You'll be presented with an option to create a new library or choose the library you want to load instead.

This is a wonderful feature if you want to seperate a collection of audio books or kids music from your main iTunes library.
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Note: In my own case, Sandra Boyton's Penguin Lament made the jump from the kids library into the main iTunes library.
Source: This handy tip has been featured on a number of our favorite sites, including CreativeBits.org, Barkings!, lifehacker.com, and Mac OS X hints.