How do you create seperate icons for SMS and Email Messages ?

Messages > Options > General Options > SMS and EMail Inboxes = Separate

Thanks for the reply. Went to Messages > Options > General Options but there was no SMS and Email Inboxes. It only has Display Time, Display Name, Display Message Header On, Display Message Count etc.....but there was no SMS and Email Inboxes option.

What's the version of the handheld OS on your Pearl?
I think you might need at least 4.2.1

It says 4.2 Core

Go to:
Options > About

You should see Wireless Handheld ... v4.2.x.x on the second or third line.

What's the complete version number you see? (Fill in the X's)

Wireless Handheld (EDGE) v 4.2.0.67 (Platform 2.2.0.39)

I'm pretty sure your handheld software is not up-to-date, so you don't have the feature you're looking for.
You could try upgrading your handheld software to a newer version. (At least v4.2.1.x

See here:
How do I upgrade the OS on my BlackBerry? - BlackBerryFAQ

Thanks a lot ! will do so.