Re: Gem usage
The gems are used as part of spell-casting, and only work for the single spell they're consumed to cast. Generally you only want to give gems to mages to cast spells that require them (ones that naturally cost gems or a vital spell you need to cast that you need a path boost for) as the AI is really bad about wasting them if you just hand them out with no specific spell scripted to take advantage of the gems.
The AI will sometimes not use any gems if the battle is lopsided enough though, so watch out for that if they're disobeying your script (annoyingly they will sometimes STILL use the gems later in the battle to reduce their fatigue when it gets near 100.) Otherwise the AI is usually pretty good about following scripts if it can. (enemies being out of range is usually the biggest culprit in broken scripts.)
Hope that helps.
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