Magic is based on a reagent system, with certain ingredients required to cast certain spells. Some skills, though, are clearly more useful than others, a problem that persists from the initial release. In fact, there are several skills, like camping or taste identification, whose in-game application is virtually nonexistent. All skills are on the same scale, from 1 to 100. When a player reaches 100 points, they earn the title of grand master.
Combat skills are fairly easy to raise to that level.
Others, like blacksmithing, mining, lumberjacking and magery, take weeks or months of practice in order to reach grand master status. Once you hit the skill cap, each point of skill you gain will almost certainly mean losing a point from another skill. Thus, many players have two or more characters, either proficient in combat or money-making skills, like tailoring or blacksmithing. Making money is quite important, but can be tricky. It's not enough, for example, to be a good tailor.