All apps seem to come with a list of permissions which have to be agreed before the app can be downloaded. Has anyone ever had a problem with these as they seem to all be saying that the app will have full access to anything on the device. Maybe I am over thinking this one and being a bit too cautious.
It's absolutely right for you to be cautious. A lot of apps ask for access to way more stuff than they really need. Some apps do this because they then sell on contact information, or automatically send texts to premium rate phone numbers. There's a good guide here.
It's also worth re-checking permissions when apps ask to update. I've not updated to the latest version of the Facebook app because, on top of the huge long list of stuff it already asked to do, it's asking for access to the Google Play billing service and to download files without permission. Sod that for a game of soldiers.