on the app store there is an area with a couple hundreds of free apps
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There is an App Store app on the iPod Touch that is used to download apps.
Apps are downloaded from the AppStore, and an Apple ID is needed to download apps.
To add apps to the iPod Touch, you can either download them from the App Store via Wi-Fi on your iPod Touch, or you can sync your iPod Touch with iTunes through your computer.
No not unless you buy the full version of the app or something in the app.
They do and they don't cost money. There is a free app section in iTunes and the App Store where you can download apps free of charge. There is also a Paid-for app section where you have go pay to get the app.