I have weapons that have charm qualites on them and I have level one Enchanted Weapon. I also have these multi-colored discs in my inventory under the magic and spells section. Is there something that I am missing here? I haven't been able to charm anything at all.
If you left click on an equipped weapon or piece of armour with a charm quality, it should open a charm window, allowing you to drag and drop charms from your inventory (etc) into the charm window to perminently add the charm to the equipment.