I also downloaded winamp upon recommendation but that doesn't seem to convert it to mp3 format which itunes requires. Are there any specific torrent sites that are compatible with itunes and iTouch?
Most music torrent downloads are in MP3 format, so just about any site is OK.
Gizmo’s Freeware: Searching for Torrents (Popular Torrent Search Sites)
http://www.techsupportalert.com/content/searching-torrents.htm
Are you trying to add the torrent file itself?
The torrent file is a text file associated with specific content. When the torrent is opened in a bittorrent client, transfer of the associated content begins. You would download a torrent at the search site and then open the torrent in a bittorrent client to get the actual music.
Gizmo’s Freeware: Best Free BitTorrent Client
http://www.techsupportalert.com/best-free-bittorrent-client.htm