OK, one question at a time.
1) Why are there so many versions of the bible
a) Language - modern language keeps changing. Some words still in use today have very different meanings than they did in the time of the King James Version (KJV), for example. Witness how, in the KJV Old Testament (OT), the word "meat" is used to refer to bread and the word "bread" is used to refer to meat. This is just one of the most obvious of a multitude of such changes in meaning. Modern translations ensure comprehension by modern speakers.
b) Source texts - archaeologists are continually making discoveries of more ancient, and more authentic, source texts. There is *still* no version that takes full advantage of the texts among the Dead Sea Scrolls, for example, and they were first discovered over 50 years ago. Modern, scholarly translations take advantage of the most recently discovered and most authoritative source texts available.
c) Scholarship - the knowledge of translating the ancient source manuscripts increases with time. Thus, a modern, scholarly translation is bound to be more consistently accurate than a scholarly translation of 400 years ago, or even 100 years ago.
d) Translation methodology - translation style is important. Style ranges from a word-for-word literal translation (which tends to inaccuracies but is useful in study), to a thought-for-thought translation (which tends to be accurate but often displays over-interpretation as well as translation). There is a world of "gray area" between these two extremes.
e) Reading level - another aspect of translation: how simple is the vocabulary? The more advanced words used, the more precise the translation and the more difficult it will be to read. The simpler the words used, the more vague or imprecise the translation and simpler it will be to understand. Again, there is a huge range for translators to choose from - from very easy-to-read to scholarly.
f) Content - though some versions strive for an "inclusive" canon, i.e. a bible that contains all books used by all major Christian sects, most display a very strong religious bias by including only a more restrictive canon. This can be seen by comparing the table of contents of the New American Standard Bible (restrictive canon) with the Oxford Annotated New Revised Standard Version (inclusive canon).
g) $ - this is the most significant contributor to the many versions available today. Any publisher that produces a modern, scholarly translation can expect to earn a profit from publishing that work. Thus, publishers are continually producing such works in an effort to fill a niche in one of the above areas or simply in offering an improved (modernized) bible to replace a currently-filled niche. If producing a new version were a money-losing proposition, only a very few well-funded religious or university organizations would be making the financial effort to produce such works. We would likely have no more than 4 new translations every century under such cost-prohibitive conditions.
2) which one is true?
Well, that depends on what you mean by "true". *All* modern, scholarly translations are (from a scholarly perspective) accurate translations - but translation *does* result in a loss or even change of meaning to a greater or, normally, lesser extent. Thus, *no* Christian bible (which is by definition a translation) is "100% true and accurate and precise" rendition of the original text. However, as mentioned, all modern, scholarly translations are as close as we can get to that ideal, and can be considered "true, but not an entirely precise rendition of the truth".
3) How can we know which is the true one.
This is something that you must either evaluate for yourself or accept on faith. Note that there are several versions among the bible of most of the sects mentioned - in other words, there is not one "Catholic" bible or one "Protestant" bible.
4) As all say that whoever adds or takes away from Gods world will be punished.
It's true that "all say" this, but those who understand that the bible is made up of several books realize that this passage refers *only* to the book of Revelation, and *not* to any other books of the bible. Only those who are not well-educated in how (and when) the bible was put together could conclude (erroneously) that this passage refers to the bible, a book that was not produced until more than 200 years *after* this passage was written!
5) Ferom what I have read ALL churches have added and taken away the scripture so ALL will be puniched.
Well, this was addressed in the previous question - this passage only applies to Revelation. Note, however, that the passage *also* does not refer to a "church" and - to the best of my knowledge - churches are incapable of such an act. Rather, individuals have been - in the far past - guilty of adding passages to scripture. Many, if not all, of these unauthentic additions have been identif