Trouble setting up separate iTunes libraries for iPhone and iPod I've searched on here and elsewhere on the tubes on how to use separate iTunes libraries but it does not seem to be working. 

My iPhone 5 has all my podcasts, about 4 albums worth of music, books, and some iTunes U stuff. It's library is on dropbox and the path is /Users/Admin/Dropbox/iTunes

My iPod classic has 50GB of music. I want it to have it's own library. Currently the library is located on my Desktop. 

I Option+click to open iTunes and choose the iPod library but Preferences still points to the iPhone library on Dropbox. Also, even with "Prevent iPhones ... from syncing automatically" checked my iPhone is located via wifi and appears in the iTunes device section next to my iPod. I can't find any option to disable this. (ETA: Found the button to disable wifi sync. I swear it was missing all afternoon.) Maybe put my iPhone into airplane mode, then connect iPod? But that's kind of an annoying solution to have to do every time. 

I'd appreciate any assistance in getting each device to reliably sync with it's own library/directory.
The library and iTunes media folder are two separate entities.
The media folder will hold everything contained within the library.
The library file will hold items such as playlists and preferences.
You could create the two libraries then go to preferences and edit the iTunes media folder locations. 
You will need two separate folders with the specified media in each.