Sorry for bumping this older thread but it's the closest I have found to the questions I have. Here is my setup... My wife has an iPad2 & iTouch, my daughter has an iTouch and I have an iTouch. I have iTunes installed on my computer and we all shared one Apple account. That worked great and we all got to share the apps/music/etc. I bought. I recently just bought myself a New iPad (iPad3) and set it up. I created a me.com account for myself and tied it to OUR Apple account that I use to log into iTunes. This was perfect and all my bookmarks, contacts, etc. is being backed up to iCloud. Well now I just updated my wife's iPad2 to iOS 5 and it asked to set up iCloud. At first I entered our Apple ID and it brought in all my iCloud stuff. So now her iPad had all my info in it. Contacts, calendar, etc. Obviously this is not what I wanted. I went in and deleted that account out and told it to create a new account. I made her her own @me.com account but I entered our Apple ID that we all share for iTunes. So now I have my own @me.com account and she has her own @me.com account yet they both point to the same Apple ID used in iTune.
Having it set up this way means we both have our own contacts, calendar, bookmarks, reminders, etc., we both have our own 5gig of storage space, we back up to our own iCloud, yet we get to share everything that is bought in the one Apple ID in iTunes. Is this correct? Is this the preferred way to set up a family and be able to share items bought without having to pay double for everything? Is there a downside to the way I set this up? I hope that wasn't confusing the way I explained it because I was really confused trying to set it up LOL. Oh next month for my daughter's birthday we will be getting her an iPad3 also. I'll make her an @me.com account like I did the wife and I so all three of us will be set up this way. Next comes 3 new iPhones! Bye Android!