You can have itunes charge to your credit card or buy a prepaid card either a itunes card or a prepaid credit card ...
You can buy iTunes credit card at your local WHSmith / Whitcoulls and some service stations. You can also buy iTunes credit card at your local Costco.
No, free iTunes purchases will never appear on your credit card bill.
On your iPod touch, go to the iTunes app, click Music at the bottom left, scroll down and you will see your iTunes credit. I added a picture in the links below.
1 credit means you can buy a song with that credit
with a credit card
Yes they are
You can fund an iTunes account with PayPal. Don't forget that you can go to many stores allow you to purchase a re-chargeable credit card. You can use that to fund your iTunes account.
Itunes
no
No
You can't.