I presently have a Ipod Nano 8gb music library set up on my pc. Now that I have purchashed a Ipod Touch 8gb how do I. 1.} set my new Ipod Touch up to my computer 2.} add my existing music library to my new Ipod Touch

Aaah, very simple procedure. First, plug your new iPod into your computer. Second, open up iTunes. Third, your computer should recognize your new iPod and will prompt you to go through a simple iPod set up, then it will ask you if you want to sync your music library to it.
Hope this helps!