Leveling depends on the difficulty. But, yeah, you need to level up your main attributes...but you can also "power level" just by getting a bunch of level ups with the easy shit -- acrobatics, etc. It'll happen eventually. It's far more vague and complicated than in Morrowind, which I like. You're not obsessed about levelling up...you just play. I really gave up and brought the difficulty slider down to the middle position. It helped out a ton.
So focus on the shit you picked as your main attributes. Some hints -- there are practice boards at the arena if you're blades, making potions for alchemy, healing yourself for restoration, etc... It's slow. Don't obsess over it -- the game is geared to your level, anyway.
Class and birthsign doesn't really matter, in the end. You sort of morph into what you need as you level up -- you'll be given the option to level up a bunch of things when the time comes and the game (and you) will move towards what you use the most.
People aren't much help to talk to at first. You have no rep, so they all say the same thing. I rarely talk to them unless they're in an odd spot (potential quest person). A crown icon means they're part of a major quest, by the way. Usually worth talking to them.
Talk to high placed people (shopowners) and odd men out (the guy in the elaborate suit of armor just hanging around) or people who are obviously guarding something. Townspeople are big bores. I got the run of a pirate ship just talking to a static character guarding the gangway. You'll soon start to pick up on the oddities.
The arena, if you're a combat type, is a good way to make money and level up. The guilds are a pain in the ass. Late last night, and some this morning, just on the cusp of moving into level three, I launched into the main quest on moderate difficulty and...so far...all is okay. I'll pick up some good shit, get a level or two, then return to wandering around.
