Casting a spell requires a certain number of spell points. Rest and certain potions will restore spell points as well as hit points. The world is divided into regions. Travel between regions can be done by land or sea and takes time during which you will not meet any monsters. You do need to have food for the journey however, so plan ahead.
Movement is in real time.
That is to say, each second of real time is approximately one minute of game time. You move by using the mouse or keyboard to walk or run. Anyone familiar with first person action games will find the movement system nearly identical. Day and night are modelled throughout the game world. Shops are generally closed at night and you can't see very far in the dark.