How do I setup an iTouch as a skype phone or facetime phone for children that live in another state with another parent?

Pretty simple, I'm a divorcee and would like to setup an iPod Touch as a facetime or Skype Phone for my children so I can keep in touch with them as they live with their mother in a different state. How do I do this intalls the apps needed and not have it tied to my account as for backup puposes they will need to do this at their mother's house on her computer. Can I gift an iTouch with Apps installed and setup? And no the Ex-wife is no good on setting this up so I doubt it would get setup properly if I just send her the iTouch and gift the apps to her account. I would just like to have it ready to go once they recieve the iTouch and not get erased or reset if they sync it to her computer.

Question that I need to know now is how do we set up a password on the Apple Airport Extreme now, when it is already set up and working without one?
Open AirPort Utility.
Select your base station, and then choose Manual Setup from the Base Station menu. Enter the base station password if necessary.
Click AirPort in the toolbar, and then click Wireless.
Choose a password scheme from the Wireless Security pop-up menu.
Enter the password all users will need in order to join this wireless network.
AirPort Utility 5.1 Help: Password-protecting your wireless network
Also, are there different types of passwords and if so, what is the most reliable one so that we don't lose connections, time out or have any other quirks?
There are different types of wireless encryption. WPA2 and WPA are the most secure especially when used with a non-dictionary password. 128 bit WEP is passable in most situations but not very strong. 40/64 bit WEP is extremely weak.
There is really no general "reliability" issue with any of them. Some devices aren't compatible with some of them.
If when we assign a password to the Apple Airport Extreme and for some reason the Netgear stops working, how do we unassign/take away the password on the Airport to get it back to the current setup that we know does work?
Follow the procedure above but disable wireless encryption instead of enabling it.

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How do I setup an iTouch as a skype phone or facetime phone for children that live in another state with another parent?

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