There is an App Store app on the iPod Touch that is used to download apps.
You can download and delete some of the free apps the company wants you to.
Yes, it doesn't matter what iTunes software you have, you can still download apps from it to download to the iPod Touch.
No it costs nothing for FREE apps on your ipod touch.
yes
Yes
Now you will not delete all your apps. If you restore your ipod it will delete all your apps but you can always re-download for free, even if it cost $ before. (Don't update if you have a jailbroken ipod)
yes it deletes everything on your ipod do not do it
nope
No
yes it can.. it only has the apps that came with the ipod but you cannot download apps like you can with the ipod touch.
You cannot get a picture behind your apps on the iPod Touch through regular settings. You have to jailbreak your iPod Touch and download a theme to get that theme behind your apps.