ok i have the xbox version and i dont know how u make a potion!! anytime i click on an herb it eats it and there is no menu for mixing ingredients. is there a person or a book i have to find or do i have to join a guild? my alchemy skill is 32 (level 4 character) does it need to be higher?

Get your hands on a mortar and pestal. From the inventory screen drag the mortar onto the picture of your character and the potion making screen will come up. Any other alchemical equipment you have (alcembic, calcinatot etc.) will appear with the mortar/pestal in four boxes in the middle of the window and there will be four more empty boxes at the bottom of the window. Click in any of these boxes at the bottom and you will be able to add any ingredients you have in your inventory. As you add ingredients, the effect of the potion will appear on the right.
There are a variety of equipment that will help you potions...

Very little spoiler below
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I picked up a skooma pipe and made some potions with it and a mortar/pestal. Not sure exactly what effect it had. Does anyone know if it does anything. When I get a chance to play again I'll do some more testing. I need to get back to my stash of equipment somewhere near Suran.

To make a potion you have to have at least a mortar and pestel. Drag this item to your picture in the inventory screen and a new window opens that allows you to mix potions. You can also equip the other three potion making items at this time as well.

since you are on the xbox you wont actually be dragging anything, but you do need a mortar and pestle. It wouldnt hurt to get an ambelic, a retort, and a calcinator too. all you need to do is click on one of them once you have them and it will open the potion making menu.

aaahhh... it all makes sense now. thanks guys for the info:)