Sorry I didn't reply back sooner (haven't been on the forums as much recently).
The main reason I haven't put together a readme file yet is because this is still in the alpha stages. Once I complete some of the functionality and streamline some of the files into others, I'll be able to focus on a more user-friendly approach. In the meantime, you can just post here if you have any questions or concerns.
The idea behind the spell folder was for a few things (eventually): importing the spells_us.txt file into the database, viewing spells, editing spells in the database, and exporting a new spells_us.txt file from the database (for easy distribution to others via a web page). Thus far, only the first has been semi-implemented.
The spells folder, right now, contains scripts to import the spells_us.txt file into a new table, which currently is spells_new. "spells" is used by other utilities, which don't use the same schema.
The insert_columns.php file was meant to be run after creating the table spells_new (which is currently done manually via command line or a GUI front-end, but could be incorporated into the script relatively easy), to create a base schema. Eventually, it will contain an array of all the column names instead of just creating field{$y}, which I'm still working on.
The add_spells.php file was meant to be run next, which actually imports the text file into the database. Luckily, there isn't anything really special about this, except it uses a ton of memory (more than 128MB, but less than 256MB). If your PHP server is set to run in safe mode, it might not complete correctly because of the ini_set() functions at the top.
In reference to "../includes/db_login.inc", that was an old file that I used to use if a file needed to access the database. Because everything needs access to the database plus several constants (race info, class info, etc), I incorporated it into the the constants.php file (1 less line per script). Just before I started sharing the files, I removed the file for good, but apparently forgot to change some of the references. I'll make sure I update it for future releases (thank you for catching that, by the way
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