1)You can use them during a duel. NOTE: You must put them in your deck, by pressing 'P' as a shortcut, and then clicking Treasure cards (they are golden) besides the schools in the upper right of the page (not the screen, the page). To use them in battle, you must discard a card (preferrably a weak one) by right cliking on it and then pressing draw
2)When placing your spell cards, the spell cards you have learned are on the right, and the blank spaces on the left are the cards currently in your deck. To take a card out of your deck, simply click on it. Depening on the type of deck you have (you can buy different decks at stores) there are more or less max spells there are, and more or less quanities of the spell cards YOUR SCHOOL has (ex. I have a good Life deck, and so I can pack 8 Life spell cards, and only 4 of the other schools).
3)You may aquire different and better spells as you get higher in level. A a low level, you may not know a lot of spells, but when you get higher level, you gain more cards to put in your deck and thus becoming a better dueler.
Hope this helps! Anthony Ghosthunter, level 56 Grandmaster Theurgist (Life)