We study the preparation and manipulation of states involving a small number of interacting particles. By controlling the splitting and fusing of potential wells, we show how to interconvert Mott-insulator-like and trapped BEC-like states. We also discuss the generation of Schrodinger cat states by splitting a microtrap and taking into practical consideration the asymmetry between the resulting wells. These schemes can be used to perform multiparticle interferometry with neutral atoms, where interference effects can be observed only when all the participating particles are measured.