Thanks Nickie,
no I didn't figure it out!
I had a save game and I started again...

Carla, I used the potions and didn't have any problem, so not quite sure what to tell you. You do need to make sure that you're clicking the potion and then clicking on the guy's name, or it won't work. In other words, you can't just click on the character. If that isn't the problem, I don't know.
Where are you in the game? I'm up in the tower after the mirror. But I've spent a lot of extra time fighting, since the baddies reappear every so often.

Nickie,
I've just arrived in Moharn, after being killed several time by the Vampiress!
This game is very difficult with this combat thing, but is soooooo fascinating and I'm loving every minute of it!

Glad you're having fun with it too, Carla! I got to that town as well, and then had to go play from a save, since I hadn't bought any mana potions (the demons were pulverizing me, just too many of them in the basement). So I'm finally back in town!