iTunes is the software you need to download/install before you can sync your iPod, it's what manages the content that you want to put on the iPod.
You'll use the iTunes program to synchronize the iPod with your computer (i.e. it's the application that allows you to put your music, pictures, videos, etc. on your iPod).
That's simply not true. The indicators used by Apple (and as I said before, the entire electronics industry) are very reliable, and only activate when exposed to significant amounts of moisture that would justifiably void the warranty.
Well, the answer will be different for different people. Although, it is the only mp3 player that comes with the app store and iTunes, and has capabilities such as web surfing over wifi. Plus, it's great for gaming, if you're into that kid of thing.
Yes, there is an app for just about everything. You can play tic-tac-toe or process credit transactions. Literally everything. Some are free and some cost money; some are expensive and some are cheap; some take up less than a MB, other take 20+. Every app is different.
Yes, you can setup your email too, either using the mail application or by accessing your email through a web browser. It's all very simple, and fast enough.
