I'm almost ashamed to ask this, since it should be pretty straight forward...

I got out of the first dungeon with no troubles, and I managed to get my hands on a bow and some arrows...however I can't fire it. Logic tells me that a simple point and click of the mouse should do it, but that didn't work, neither did holding the attack button and drawing the mouse back. I'm really at a loss here, and any help would be awesome.

With bows you just right click to fire them. You "ready" the bow similar to melee weapons, though - you should see your character's hand holding the bow with an arrow ready.

I did that, but it didn't work...at least not at first. However I did change the controls for drawing/swinging weapons back to defaults and it works fine. Apparently the game doesn't like it when I use mouse 1 to fire arrows. Thanks for the help, King Bear.

I did the same, and I ended up having to use Mouse1 for normal weapons, and mouse2 for projectiles. Funny how it works.