Do gems do anything? Not soul gems, but ruby's and arnet's, etc. Should I just sell them?

What ingredients are the easiest to find that would allow me to make majicka potions?

I had a hell of a time getting through the second mission in the College of Winterhold where you have to go through the dungeon and fight the Draugr Wight. I was at level 3 (4 while I was fighting him) as a pure mage. Thank goodness I had a lot of potions and could run away to regenerate health, that fight really had my heart pumping. I looked on the wiki page and it appers this guy was level 13 which explains why I was having so much trouble. I would assume I am not supposed to be in this area at this low a level and was wondering what advice you guys have. Should I just keep doing the quests at this time? Or should I stop and come back when I am a little tougher?

You should do the main quest until you get to the mountain(you'll know it when you get there) at least.

1) you can make jewellery with 'em.

2) Dunno, sorry

3) Up to you, if it is too hard i.e. not enjoyable, then go away, level up, and then try again. Although low level mages are qite weak.

Jewelry that is useful or just jewelry that will sell for more than the gems alone?

You can make 'em into necklace, rings, stuff like that, and you can equip 'em. Those accessories can be enchanted to give you more oomph.

I would assume you do this at a blacksmith's place?

Anyone?