You might also want to consider downloading the iPeng app for your iPod Touch - it is a more comprehensive sofware to manage your Squeezebox from your iPod. I have not, however, found it to be very intuitive, but certainly more powerful than using Remote. Not only can you use your iTunes library via a Squeezebox Touch, but you can simultaneously access a secondary folder with FLAC files if you want to try some high-rez music. The Touch is capable of streaming up to 24/96 files via wireless or Ethernet. It may be a good time to download Squeezeserver and become acquainted with the interface. This is the software you will use to control any Squeeze devices, and that will access your music library. To use the iTunes Library, first go to your Settings window (button is at the lower left in the main window). Choose the iTunes tab, and check the box at the top that says "Use iTunes". This tells SB to look at your iTunes folder for your library info. Then go back to the "Basic Settings" tab and look for the line that says "Music Folder" - this is where you will indicate the OTHER folder that contains music files that iTunes cannot manage (FLAC for instance). Viola - you are on your way to a more comprehensive library. Then go to HDTracks and download a free sampler of hi-rez music and play a few cuts and see if it's something you think is worth the $. You may not. If not, you won't have to deal with a second folder of music.
Have fun with your SB Touch.