I have never had an ipod before and i didn't know if the touch only uses itunes or other music things like limewire. (i don't use limewire btw)
Another question i had was do you have to pay for the internet even if you are paying for an internet service at your house?
I'm assuming you are asking if you have to use the iTunes Music Store to get music for your touch. No, you can get music from any source as long as it's non-DRM protected MP3, AAC, or WAV formatted. You need to use the iTunes application itself to sync your music onto your iPod (of any sort), regardless of where the music came from; it will also convert (non-DRM protected) music to a format your iPod can play.
There's a few other applications out there that let you sync your music onto an iPod, but unless you're a die-hard Linux user there's no good reason to use them.
As for paying for the internet, as mentioned, as long as you have a WiFi router/access point/or even just adapter in your computer you can share your home internet connection to your touch free of charge. I'm assuming that you saw the small print on Apple's site about "fees may apply" under the internet features. This is merely indicating that you have to get an internet connection to the touch - it doesn't include any service. You have to pay a company to serve your internet connection to your house, which you can then share with your computer and touch. Alternatively, there are plans you can sign up for that will give you WiFi access at public places. For example, some stores have wireless access for their customers, which you may or may not have to pay for. Some cell carriers (T-Mobile comes to mind) offer packages that let you use their public WiFi points if you're a member.
On a related note, I remember reading that Apple/Starbucks were setting up a partnership where all iPhones would automatically join Starbucks wireless networks for free when they're detected. I don't know if Starbucks normally has free for anyone WiFi, but if not does this also apply to the touch? Would be handy, obviously, since there are Starbucks EVERYWHERE and they all have WiFi, which is required to update your mail, etc. on a touch unlike an iPhone...