In the example my sprite object name is "LevSel" and the animations associated with that sprite are "Act1toCh1", "Ch1toCh2", etc. I have the Stop Animation set up to prevent the 1st animation from running before any touches happen.
Unfortunately this does not appear to work. What am I missing?
Almost correct, except for the above part! :)
The idea is, that at your 'set animation' action you dynamically create the name of the animation you want to refer. So that would mean merging the touches variable as part of the created animation name.
What happens now, is that you try to set animation name as "Act1toCh1" & sprite.touches, which seeks for animation called "Act1toCh11" (notice the extra 1, which is value of touches variable).
What you want, is it to seek animation with touches variable replacing the last number. You can achieve it like this: "Act1toCh" & sprite.touches. So if your touches variable is 4, you would seek an animation called "Act1toCh4".
This technique is not the most obvious or clear to use, but it's something I personally use very often. Hope this clears it up! :)