1. yes, using a skill improves it, although it doesn't go really fast. I noticed that definitely on damaging spells, and am not sure about p.e. healing. I should try out using every ounce of magic on unnecessary healing spells, because a target for those always exists. Note that you'll only see the skill advance when levelling up, so you'll have to be patient to see the results of exercising a skill.
2) If you exit Valeia East and go as far south-east as you can, there are ruins of a house with 3 rogues and Gorthius. He'll tell you about having 'misplaced' H'Tharks lockpicks, and asks if you can return them to him.
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