other then limit break. how the fuck do you use magic. and what are those blue circles all other the ground.

you use magic by finding materiai.e:

fire materia
blizzard materia
thunder materia

the blue things all over the floor are mako points

you attach the materia to your gun then press L1 or R1 to aim then press L1 to fire

(you can only use magic if you have mp (the bar above your health))

hope this answers your question

ROFL~ I had the EXACT SAME problem XD The game isn't a very good tutorial. Just press different buttons, or look in the instruction manual, if you have it. I didn't.

I think the game did a good job of explaining...

User error, I suppose.