I know this sounds ridiculous, but I actually couldn't get magic to work. Even after following the instructions in the tutorial. I would hasten a guess that this isn't one of the (in)famous bugs. Any help is appreciated :)

First you have to select which spells you want to use in the spell menu. When you have done that, you have to rest before they become available for casting. You must rest each and every time your spells are used up.

If you just rest anywhere in a dungeon or in the wilds, you stand a high chance of being eaten by wandering monsters in ToEE. So it is best to rest in "safe" locations such as the Welcome Wench Inn in Homlet, or the Moathouse Tower (SE corner of the main entrance courtyard) once you get to the Moathouse. Rest for 8 hours to recharge your spells. Also if you have Scribe Scroll feat you can take the opportunity to scribe some scrolls as well, to give you a bit of extra spell-casting oomph.

Thanks, but I did that part. Its the actual casting that isn't happening for me. I select the spell from the menu, left click, and then when I choose to attack an enemy, I still get a basic melee attack. What now?

What armour is your character wearing? Each item of armour has a spell failure penalty, and the higher the value, the more likely it is that your casting will fail, and revert to the default (melee) attack.

I'd suggest peeking at one of Kikoskias let's play episodes.

http://www.youtube.com/watch?v=3oNicADTf50

Not sure which episode would have spellcasting, but most do (after the very beginning ones).
He moves slowly enough so you'll likely spot what you're doing wrong.

Actually, it was from the tutorial part of the game. So.. the armor Airel (sp?) had when your predetermined character meets her. Thanks, I may just do that.

!!!!!!!!!!!!!

I know this is a serious necro but I figure it's appropriate with this game---boooooooooo! Anyone stumbling across this, I think I figured it out since I ran into the same thing in the tutorial. The tutorial tells you to click on the 'rest until healed' box when you are supposed to rest for 8 hours. Since neither in your party is injured (or at least you may not be if you didn't get hit by the rat which i didn't) then I assume if you check the rest until healed box, then you don't rest at all. So that's why the spells weren't being memorized. Once you rest for 8 hours, the spell casting icon will appear at the right on the radial dial when you right-click. End of screaming into void since undoubtedly no one will read this.

I read it. Thanks. You would think that after 17 years they would fix the flipping tutorial which is OBVIOUSLY wrong.