I'm running V 1.1.5 on my iTouch so do I have to upgrade to 2.2 (or whatever the latest version is) to access the Applications Store on my iTouch?

Yes - only versions 2.x support App Store.

Thanks for the reply. I'm a tad wary of downloading the upgrade versions as they've caused so many problems for iTouch owners. Dare I take the risk!!!!!

iTouch is a cheap rip off...it's iPod touch.
Installing the latest 2.2 software update (£5.99 I believe) will be of benefit to you, it will make your iPod more stable and also bring the App Store to you. You shouldn't experience problems with it but if you do, just restore it and it will be as good as new (well better in your case!).

We just bought a touch and it gave us the latest FW for FREE. Is this just a one off cause its new and any further updates I will have to pay for ???

It's one of the perks of buying the new Touch - Basically a way of helping people to justify buying one if their upgrading from series 1 touch, and also more difficult to Jailbreak (i.e, add apps which improve the experience, that Apple don't want you to).

Just like buying a new PC that's comes with Vista or a new Mac that comes with Leopard, a new iPod / Touch will come with the latest OS installed.

Big future updates will probably cost.