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Ipod touch 2g can't install application on it

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Here is the thing I have a ipod touch 2g and I know there is a way to get aim on there for free going through the intunes application thing but when I do try to register my ipod and I do the password it keeps saying its wrong.

When I try to create the itunes account it says I have to pay for it. I dont know what to do anyone got any ideas?