Let's keep these coming since I seem to run into a lot of different issues with the game.
Anyway, Virgil (or other NPCs for that matter) seem to be unable to heal me. Virgil has full fatigue when he casts the spell and I see all the proper magicka visual effects and sounds, but I only lose fatigue when this is done. This is really annoying since I don't want to run to the nearest town every time I kill one or two monsters.
What's up with this?

Is this the vanilla game or UAP-modded??
And how far along on the tech side are you now?

GOG vanilla, only with the hires mod.
Heh, I was actually thinking about that! I'm a bit past 50 to tech side, maybe 51.5.

Tried healing yourself with potions/herbal medicines?

Yeah, thanks again, now I need to find a supplier for myself.

Since your tech is so high I am guessing you have been to Dernholm? Well, there is a tech healer you can get in Dernholm. (You can find her in a run down shack in the southerly-west portion of town). You may have to make a follower choice at that point (depending on your CHA level - You do not need Virgil in your party to advance the main plot, though he offers random story line updates when you talk to him [at certain plot points at least] - I would say dump Virgil and pick up the tech healer)

Virgil always struck me as the most interesting character, so if this is your first playthrough and you have a lot of CHA, then I would suggest keeping him. If you're short on room, though, drop him. You can always use him in your next run. :D