No.
No.
Yes its free.
All you need to do is log out of the account you are in.
New iTunes software can be installed to update the previous version. Only the iTunes software is updated the iTunes library with your music/videos etc. is not affected by the update.
just click create new account on your itunes sign in page and create a new one for your new ipod
You can use postal code applicable as per your location or area for creating the apple itunes account.
Yes,you can go onto your account settings for iTunes and then click Edit payment information. You can enter an iTunes card as long as you have the code on the back that's only when you start creating an account when you already have an account you go to itunes and go to redeem and type in your itunes gift card code
An Itunes account is free
you can't. you can only get games on itunes if you have an account.
Holding down the Alt/Option key while launching iTunes will offer you the choice of selecting an existing library or creating a new one.
I suggest you reinstall ur iTunes, and then reset ur iTunes account password to see if you can log into itunes. If it still doesn't work. You can create a new iTunes account. Hope it helps.
Updating the iTunes software will not affect your existing iTunes account or music library.