How do you level up spells?
 

I am a level 4 paladin and I cannot level up my spells yet.

I have 30 mana stones, and I should be able to upgrade my healing spell form level one correct?

Also when can I start copying the scrolls to spells?

Thanks!

You need to have the appropriate skill (Order, Distortion, Chaos magic). For example - to level up healing to healing II, you need Order level 2 magic (from the magic tree). Similarly, to copy, say, flame arrow to your spellbook you need Chaos level 1.