The tutorial you linked in the first post explains how to make the right display names. The references you use in the translatedStringKey thing is the entries from your skilldata:

data "DisplayName" "YourSkill"

and

data "Description" "HibernateDesc"

The "Ref" entries are just references, not actual data.

The level data for skillbooks is in object.txt in the data folder, though I'm not really sure why it would be level 7 if you changed it (Don't know what itemdata.txt is unless you made that txt file and are putting your entries in there.) Is your skillbook root template pointing to the right stats entry?