I do not think your iPod has that capability. But since I'm unknowledgeable in this subject matter, I'd suggest going to the Apple website and asking in their forums, etc.
You can download software for the iPod from Apple on the Apple website for free. This software includes access to the iTunes store. You can download this software without owning an iPod.
You need special software
It depends on what software your ipod is running.
NO,NO, and ,NO. An ipod does not have a disc drive
This ipod manage software can transfer the files from ipod to computer, ipod to iTunes, and iPod to iPod:
There is no such thing as 'installing' an iPod Touch.
Sorry but without hacked or emulated software no Kirby or Nintendo games can be downloaded onto the iPod.
No, an iPod is a piece of hardware that contains software.
To jailbreak your iPod, you must install risky stuff. Jailbreaking in itself is risky enough.
This ipod manage software can transfer the files from ipod to computer, ipod to iTunes, and iPod to iPod: http://www.ipodtransfer.net/how-to-transfer-ipod-file-with-ipod-transfer-software.html
'3g' isn't an iPod Touch update. You can get the 3.0 software for the iPod Touch, however, by going onto iTunes and buying the software for $9.99 USD (United States Dollars), and then installing it via iTunes while your iPod is plugged into the computer. It will walk you through how to update it if you just buy it, it will ask you to either download and install or just download.
Placing them in the notes folder of the ipod?