1) My party consists of the following

Elven fighter - specialized great swords and bows
Dwarf Fighter - specialized axes and bows
Cleric
Mage
Thief/Mage
Paladin - specialized in greatswords and bows

Is this a good group composition for this game???

2) Four of my characters have "Leveled up" and have a + sign by their faces, does this mean they are at level two or not? Because in character description it still lists them as level one.

3) How do I make my mage memorize more spells? I chose two spells for them to to know at the beginning of the game. When I pick the mage book I see the known spells and memorized spells. Both of the spells i picked for my mage to know are in the book, but she can only use one, any ideas?

1) Looks pretty "balance" to me.
2) When your character levels up, go to the character info screen. The level up button will no longer be "grayed out", when you click on it, it will show you the result of the level advancement. When you click "OK" (or done, I forgot how the buttons are named on screen), you character will have the level up benefits in the game.
3) The mage can only memorize more spell from magical items or leveling up during the game.

------------------
Long live H22A1!!!!!

Sounds like the party is ok...The plus sign shows that the character has gained enough Experiance to gain a level. Click on the Character Proflie icon (head shaped thingy ) and as Accord said the level up button will no longer be greyed out. Click it and you will see the results of hit point gain etc... Remember to raise the weapon and thief abilities. They will show at the top of each list if you recieve any for the level. Then ok or done.
Your mage can learn new spells from scrolls by right clicking on the scroll in the inventory and clicking on "write to spellbook" I believe is the phrase. You can gain items that allow more spells to be memorized. As well as level increase granted additional spells. Spells are only re-memorized after sleep though so remember to sleep.

------------------

Also, remember that just because a spell is in your spellbook doesn't mean you can cast it. You need to memorize it first.

To memorize a spell, go into your spellbook. On the right hand side is a list of spells in your spellbook. On the left is the list of spells you currently have memorized. Click on a spell on the righ hand side and it will appear in one of the slots on the left. Remember that you can memorize a spell more than oncel. Thus, you can memorize magic missile tiwce and then be able to cast it twice.


After you have chosen the spells to memorize, they will appear faded in your spellbook. After you rest, they will appear darkened and you will be able to cast them.

You need to go through the same spell memorization process with Clerics.