1.) Spell Timing.
We have been playing where spells are resolved in the order they are played. What is unclear is who can play spells first? If it is my turn do I get casting priority? Or is it just simply a matter of who ever is the quicker at declaring what they are doing?
It's such a difficult question I've tried to answer many times, but there are no rules to quote so it's difficult to back up. All that I can suggest is "do not cast Spells in response to other Spells, with the exception of Counterspell, Reflection and Spell Scorch".
Normally once a players says he casts a Spell, it shall immediately be resolved, so who yells first gets priority. Then, other Spells can be played to counter the effect (e.g. Preservation against Life Tap) or to alter it (e.g. Weakness on a character that has just cast Psyonic Blast), always respecting the casting conditions of course. This will work well, normally, but there are certain situations when casting Spells will lead to big confusion.
2.) Armor use on the 'attack'.
I read a curious line in the standard rules book. In the section that defines weapons and armors it states that only one armor may be used during an "attack". Does this mean if you are attacking another player you may only use a helmet or a shield or an armor? Or does this mean any time you are in a battle with a creature or player you may only use 1?
"Attack" is the word used for "combat" in Talisma. The rulebook, page 10, features "ATTACKS" as the main title of the combat section. If your read the rules, you'll notice that "attack" is used as a general word meaning any battle or psychic combat, either against creatures or players. There's a limitation of only 1 Weapon and 1 Armour for each "attack"; each Weapon/Armour says whether it can be used in battle or psychic combat, but the limitation is always 1 W / 1 A.
3.) Random Spell.
The Lose Strength* and Lose Craft* effects of this spell are not clear. The asterick reads "All but strength and craft values and those gained from followers and objects". What exactley does this mean? You lose all your strength points you've gained from cashing in trophies and/or pools of strength?
You lose all cones of Strength/Craft you have gained during the game; in other words, you're back to your starting value, but bonuses from Objects and Followers still apply.
Do spells/abilities that let you 'evade' let you avoid spells and the crown of command effect or no?
No, you can only evade creatures and characters. Just check the rulebook, page 14 for a list of what can be evaded.
5.) "Gaining" spells.
When a druid with 6+ craft lands on a woods region he gains his full compliment of spells. Does that mean I draw 3 spell cards regardless of how many I am holdinig? Or does it mean that I draw enough spell cards to bring the total in my hand up to 3?
You can acquire Spells only if your Craft allows to have more Spells than you already have, according to the table on page 13 of the Rulebook. Gaining Spells and then discard down to your max. number of Spells is not allowed, except when explicitly stated by a card.