A few newbie questions...

quote I am stupid HELP

1. How do you level up? I have killed several people and almost as many creatures, but I havn't leveled up, however several times in battle a thing as poped up and said ****** skill has gone up to ** but no leveling...

2. I have basically gone around killing people who are alone in houses, I have done that through Seyda Neen (I also did the light house there), Pelagiad, Balmora, and Ald'ruhn, then I have gone and taken everything from their house, and sold it for gold. I havn't had a problem with this because I am pretty good with long blade (50, which is pretty good for the begining) and I have a lot of armor. But I am wondering to think if there are other side effects, I mean I have killed atleast 10 people, probabally more, so that has to have some impact on the game. Is this something that most people do, atleast in the begining?

3. A few hours back I was resting outside, appearentally awakened by a loud noise, the was a guy behind me attacking me, I eventually killed him but I was very weakened after that. Later I got to Palagaid and a guy there told me he was an assasian (well I told him that, but I didn't figure it out until then) but will that happen every time I rest outside?

4. I'm thinking of starting over, that time was just to get the grasp of the game. Whats the best race, and whats the best combo on the "fill out the forms yourself (custom class)"?

Thanks