I was just starting out a wizard and I plan to make him a pale master at some point. I saw a feat called "practiced spellcaster" and im wondering if this feat makes my caster level increase even if it doesnt normally when taking pale master levels?
Does caster levels mean the 9 levels an mage has spells or is it somehting else?

I think it means that your palemaster levels count when determining your caster level.

EG I have a character with almost no wizard, bard or cleric levels yet he has 34 levels of pale master and he can cast epic spells.

The caster level is the amount of levels you have in a specific class. For example, an 8/5/9 sorcerer/cleric/paladin would have a caster level of 8 when casting arcane spells, a caster level of 5 when casting cleric spells and one of 9 with his paladin spells. The spell level is the level of the spell itself (ranging from 0-9, and using metamagic like Empower Spell does not increase this).
Caster level typically affects spell duration and the extent of the spell's bonus/bonus damage. Spell level and the casting ability score influence the saving throw the enemy needs to resist.

The palemaster continues to gain arcane spell slots (castings/day) and even unlocks new spell levels, but you do not gain bonus spells or increased caster levels.

so I can choose Pale master, the Practiced Spellcaster feat and continue gaining spell levels?

Yes, I believe so. But you will need to scribe spell scrolls into your spellbook to actually be able to cast anything of that level.
For bards and sorcerers, it's even worse, as they need to take a level in their own class now and then if they're going to get new toys to cast beyond anything metamagical.

ah, it doesnt matter really, I dont like that the new rules let you choose spells anyways...spell scribing has been made uninportant and I dont like that

Even though I'm not big on spell casters, not my cup of tea, I agree. It's so much better to have to write spells into your book, than to just have them handed to you arbitrarily at lvl up. This is the one place that I feel the BG series and Icewind Dale were better. Nothing like having the ability to cast a spell lvl, but can't find a spell to scribe, or, just having one spell, and having to make the best of it. It seems more *real* to me.