Another option is execute a subroutine to measure how long the sensor was touched. Something like:
testsensor: ' touchpad subroutine waits for a touch and release, "times" it in variable b1
b1=0 ' reset counter
flag=0 ' flag=0 unless 2 seconds exceeded
retest:touch16 [TOUCHCONFIG], C.4,w1 ' check sensor
if w1>3600 then inc b1:endif ' increment counter b1 if triggered
if w1<3600 and b1>0 then exit ' go to exit after sensor triggered & released
pause 50 ' small pause, adjust for timing
goto retest ' loop back
exit: if b1>n then flag=1 ' set flag=1 if 2 seconds exceeded
return
I'm far from a PicAxe and that's off the top of my head, but something along those lines will work. By measuring the length of the touch, you could also branch to different parts of the program.