Your attributes make up the technical meat of your character, in a manner of speaking. Each talent has a primary influencing attribute, and attributes are used to determine whether or not your character is capable of performing certain actions.
You have 42 points to allot to your attributes. The max level for a stat is 10, the minimum is 2. Add and subtract racial/gift modifiers AFTER you have assigned your attributes. They can boost your maximum to 16 and lower your minimum to 1.
When you add in racial modifiers, be sure to note that you did so. For instance:
Strength: 6 (4 + 2)
This means your character had a base Strength of 4, but you have a racial bonus of 2, making your total 6. You put your final total as your attribute score - the first number you see after "Strength:". You should put the math after this number.
For every 1 point above 5 in a single stat, you gain a +1 bonus to dice rolls related to that stat. The neutral number for each stat is 5, which will give you a 0 modifier. For every 1 point below 5, you lose one point on your modifier (4 is -1, 3 is -2, etc.), and for every 1 point above 5, you gain a point to your modifier (6 is +1, 7 is +2, etc.).
Standard rolls in the game will be a d20 + your attribute modifier + your talent bonus (if any) vs. a set DC.
Here are the attributes:
Strength – Strength determines the physical power of your character. It determines your chance to hit with most melee weapons, how hard you hit, how well you can intimidate others, and how much you can lift.
Agility – Agility determines the reflexes and agility of your character. It is the prime stat of defense, determining how effectively your character dodges attacks. It also influences your acrobatics, speed in general, and the nimbleness of your fingers (such as when attempting to pick locks).
Constitution – Constitution determines the toughness of your character. It is possibly the most important stat for general survivability, as it determines your hit points. It also determines how well your character endures hardship of every physical type (pain in general, heat, cold, etc.) and allows you to stay conscious in situations where others may not. Your HP is determined by your Constitution x 5.
Perception – Perception influences the senses of your character. It determines your chance to hit with ranged weapons, how well you can detect lies or traps, and how well you can see and hear, as well as how well you can read other characters.
Intelligence – Intelligence represents how smart you are. It determines how well you can reason, figure out complexities, and connect ideas. At 8+ Intelligence, you may pick an extra Talent.
Spirit – Spirit is the power of your personality and soul, including your determination and self-control. It determines your willpower, your resistance to mental influences, your ability to influence others, and the power of all spells. Higher spirit (combined with Constitution) will even give you a better chance to resist death.
Luck – Luck has a small hand in every single action your character takes, as well as actions taken upon them, and how certain events play out. It is by no means a vital stat, but it is an extremely helpful one. It can result in even the worst situations turning to your character’s favor – or vice versa.
Also please note: Your "physical stats" are Strength, Agility, Constitution, and Perception. Any reference to "physical stats" means those 4.