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BUILDING CHARACTER (Should it be glowing like that?) - This seems to be the area I see the most questions about RS Gold, so this is probably a good place to go next.
Basically, building up your character is done in 2 ways - earning experience and spending points. The first part is the no-brainer: you get experience for successfully putting the pointy end of your weapon into the bad guys and for completing quests.
The second part attracts the questions, though - especially when it comes to skill points. Here's the basic rundown of your points:
Stat points: Each level up, aside from restoring your health and energy, gives you 5 points to allocate to your stats. Bring up the character menu using either the menu in the upper right or pressing "C" and you'll see, in the middle-left of the new window, your 5 main attributes, each with a plus button now beside it.
Clicking this plus will, quite obviously, add a point to the stat in question, thus making your character more powerful. Choose carefully, though, as there is no "undo" option here.
Skill points: With each level up also comes a bonus skill point. You cannot allocate yourself more skills on your own! This is what causes the confusion.