Game center? related to purchased apps?

I've had my iphone for 2 weeks and am trying to learn about it. I have saved the link for the user's manual and am reading posts here as questions come up. I just purchased my first app. I had downloaded a few free apps and just bought angry birds. I opened it and it asks me if I want to use my apple ID or create a new one. I have a few questions related to this:
I obviously have an apple id. Do I sign in with my apple id and password to play the game? Is that dangerous, in giving the game website my id and password? Since it would allow someone to purchase things from itunes, it seems to be something I would want to protect and I don't know who this info goes to when I log into the new purchased app. I did log in to itunes to buy it and download it. this is to play the game. I hit cancel the first time and it let me play the game. tonight, when I do the same thing, a window opens asking me to sign into the game center and wants my apple id.
Is the game center something that becomes automatic when you purchase an app, vs the free apps? I kept hitting cancel and eventually, it lets me play the game. so I am confused on what it is for.
thanks for your help.

I don't use Games Center so I can't answer you directly, but [this article|http://www.ilounge.com/index.php/articles/comments/game-center-for-ios- understanding-apples-new-video-game-matchmaking-trackin>looks like it has information that you may find helpful.

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