..- Overall the game I don't understand it. I've had it for 2 years on my PS3 yet I still don't know what to do & how to level up. The menu is so complex (The 'journal') I'd always like to give it a chance every now and then and I love Skyrim.

I think the furthest I've gotten was after escaping the jail, I somehow stumbled to the thieves guild quests...

You increase your characters level by achieving a total of 10 skill increases within your Major Skills, then sleep in a bed.

There's a lot of information in the journal, and you were pretty vague in what you find complex, so instead of me outlining everything in the journal below is a link to UESP where its already been done. Reading the game manual wouldn't hurt either.

http://uesp.net/wiki/Oblivion:Journal

In this game, it's not what you do (quests) that level you, it's the things you do while in the game, fighting, defending, casting magic etc. As stated above the more you use your Major Skills, the more you level up.