Shady, just to make sure you understand, your Leadership (You have 642 in the screenshot) tells you how large EACH of your units can be. So right now you can have 642 leadership worth of Mages, 642 Leadership of Seadogs, etc.
If you hover your mouse over one of your troops, it will tell you how many you have, and how many more you could get.
Crystals allow you to learn or upgrade spells, once you have learned that school of magic in the MAGIC tree.
You find them on the map, get them for quests, and other random places.
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