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I am confused about what the "skill" wand does. From the manual, it sounds like it dictates how much mana can be spent on casting spells each turn. But, if I have a bunch of mana in my reserves, it seems I can cast spells in a single turn even if my skill wand is set to zero. So what does it actually do?

My "spell casting skill" listed at the bottom of the magic screen does not seem to change when I change the skill wand either.
This question / problem has been solved by legrafimage
Waltorious, this wand shows the amount of the power each turn you are expending on improving your skill - it's a long-term investment. The higher this wand's setting, the faster your skill will increase, that's it. None of these three wands have any effect whatsoever during your turn, they all effect what happens after you hit "next turn": how many skill points you go up, how much mana you gain, how many research points are added to your currently-researching spell.
Ah, that makes sense. Thanks!
Spellcasting heroes in your capital city will also add their spell skill to yours for the purpose of overland spellcasting.