The password is your iTunes account password. There isn't any special password that you must have.
Yes
There is an App Store app on the iPod Touch that is used to download apps.
Yes, it doesn't matter what iTunes software you have, you can still download apps from it to download to the iPod Touch.
You can't... You need a password in order to pay for the app.
No it costs nothing for FREE apps on your ipod touch.
to do it u have to plug in your ipod to your computer.click app store then find the app u like then click it,enter your i tunes password then it will download it.
yes
Yes
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.
There is no way to get free apps that come WITH the iPod Touch, but you have the ability to download thousands of free apps when you buy it.
just go to the apps store a download the app you want.