if you take a peek in the baseclass.txt file in your main dungeon craft directory, the experience tables are laid out for each class.
and, you did guess correctly, you do need to go to some place special to level up. choose the 'training hall' event to build someplace. (this can be part of a chain, so you can have your clerics go to the temple to train, etc.)
the pc's just go in to the training hall, pay whatever fee you've set up and train to the next level. i believe it's set up so they can only advance one level at a time.
-manikus
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