I recently became a level 5 alchemist. I ran across my first augmentation plant, dragged a flask of my potion over it and I got nothing. All my potions showed an X when I tried to mix. My restoration potions got a blinkng plant, but when I dropped the potion on it nothing happened and it put the potions back in my inventory. What am I doing wrong?

Are you standing close enough to the plant? (red or white blinking?)

What size restoration potion did you try? A stack of minor potions should have created a normal restoration potion with the rest of the stack returning to your inventory (same for any other type of minor potion).
Did you see a bit of a flash when you dropped the stack? I tested this with the augmentor plant beside the north east house in Aleroth, and the normal restoration potion was placed inside the house (ie moved north of an obstruction, rather than south). With the (mostly hidden) augmentor south west of the small graveyard's entrance the potion the potion was obscured by the roof but showed up on mouse-over or with Alt.

How about finally reading the damn manual instead of spamming the forum with newbie questions?

I was trying to use the aumentation plant in the imp world. The one on the table after you get the imp to join the council. I did try all that you suggested.

That one should work, but to be close enough you need to stand at the north west corner of the table. If you move onto the carpet you are too far away.

Ha! typical coward. Blasting someone in a forum. You must be a little kid or a fat weak no life slub. If you want I'll give you my phone number and we could set up a time and place to meet then you could see what you are made of geek. And I did read the manual, didnt help much. Bye, oh cool one. ;)

And based on his reply, he didn't put any attribute points into intelligence either :)

Honestly, I'm surprised you didn't make another topic just for that reply...

you are clearly a very unhappy kid or immature adult. I feel sorry for you. Good day ;>