You generally do have to tell each character to use spells one by one, though if you want, I think you can go in and pick scripts for characters that will tell it to use offensive spells whenever an enemy is sited. Usually you go into the character record screen and customize the character and choose scripts. There should be some aggressive scripts for each character class and some of them tell the character to cast offensive spells when an enemy is sited. You probably are better off choosing the spells and targets your self though, for more effective use of the magic. You should also make sure they are equipped with a ranged weapon if you do use the aggressive scripts, since you don't want magic users wading into melee when their spells run out. The other party members shouldn't stop fighting just because you highlight one character, unless you have the AI icon off and you have only given each charactger one enemy to fight and that enemy has been killed, then sometimes the character will just wait. If you have the team AI on, then the characters should pick another enemy to attack (if they have an aggressive AI script or are defending another party member etc.) I know you can pick the AI scripts for player generated characters, and I think you can do it for NPC's as well. I usually prefer to turn off the AI scripts though and manage each character, using the pause alot, since in a battle you need to make sure every one is using the right kind of weapon or spell and attacking the right enemies etc. Hope this helps.

firstly try turning your AI (artificial inteligence) on. You must select them one by one try changing to an offensive script

In case you dont know, spacebar pauses the game so u can tell everyone what to do and then press spacebar again and everyone will do what you told them.

Since the others have already answered your question:
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