You only pay for music or other things that you buy in the iTunes store/or hardware or other goodies from the Apple store.
Where were you trying to download these updates? Was it from the Apple website?
You should report the website that took your money to the Better Business Bureau in the relevant city (place the website is headquartered). You got robbed!
On Edit: I just realized that you probably tried to do things via the internet with your iTouch when it wasn't connected to your computer and iTunes. What a mistake for you! Your fees are probably all internet charges from whatever provider you have a contract with. You need to discuss this ripoff with them.
In the future, you should probably try to update your iPod Touch when it's connected to your computer/iTunes and the service is free.
Message was edited by: samdogmom