I was quite surprised to see players struggling while figuring out the magic system because I thought it was very simple and far from the complexity want it to be on full release in its current early development stage. So I decided to gather together a short guide to help beginners.
Magic: In order to cast magic, you need skill points in Magic Power and you need to buy spells from wizard, sorcerer, necromancer, cleric or bard masters. Currently, all spells are throwing weapons and very similar to each other. For them to be effective, you also need skills in skill power (in next release, mage characters will spawn with high power throw). To be able to buy spells from certain trainers, you need specific items in your inventory. With wizard masters in Arcanice, you need a spellbook (can be bought from the Alchemist's Store), with Zarol the Lich you need a grimoire (can be bought from Wenka in Lich's Tower), with Archpriest Taotthas and Flame Prophet Amaan you need a holy book (can be bought from the merchant just outside the church or store in Lahabul). You can buy fire spells without having a spellbook from sorcerer trainer Naejan in Halfway There Inn where also the bard trainer resides. When you have master Magic Power, you can construct a golem if you have a spellbook in your inventory.
Necromancy: To be able to summon undead, you need skill points in necromancy and a grimoire (can be bought from Wenka in Skullzow). You summon more undead as the level of "Summon Undead" spell increases. "Summon Undead V" summons lots of undead walkers and footmen, and if you have enough party capacity, it will summon 5 Undead Knights. You can also summon a necromancer mount. You can choose to transform yourself into a lich if you master necromancy and have 500 renown and 1 million denars. You can access necromancy menu from camp menu.
Alchemy: Alchemy in its very early development stage. You need skill points in alchemy and potion recipes (can be bought from Alchemist's Store in Arcanice). Health Points increase your Ironflesh and Mana Points increase your Power Throw (mana system is yet to be introduced). You can find a remote island, conjure some points and farm money by selling your potions in towns. You can access alchemy menu from camp menu.
Summoning Demons: You can summon demons if you have enough skill points in Magic Power and an honor rating below -50. You can access warlock menu from camp menu.
Epic Quest: You can start the epic quest by talking to Mojezeld and Naejan in Halfway There Inn once you're level 25. You can also sell the quest reward to Mojezald in Halfway There Inn for a million gold.
Legendary Items: Clear the Warlock's Lair and take the portal to his chambers.
A Tip for Dark Elves: If you're playing a Dark Elf (you can play one, choose Elf in race selection), I suggest you to wander in around Mistwood, the opposite side of the river from the great tree where Lady of the Forest resides. Look for the giant spider.