Im looking for a Mud in which to roleplay a mage styled character, where killing mobs, questing, etc is not needed to gain skill. Rather the use of existing skill increases ones current skills and also unlocks the use of later skills (or a specific quest is needed to gain such, this point is really rather general) Preferably levelless. The role Im shooting for is more of the mage who intensely studies his craft out of a desire for higher knowlege that drives him above all.

I dont like the repetitiveness of mob combat, nor do I like "lesson" or "practice" based systems that limit character's learning based on things that really have no bearing on the learning process and are just outmoded holdovers from early XP based RPG's where levels dictated learning.

If there are any muds out there who fit this, I would love to have a go at it, and perhaps recommend it to my friends.

Edit: near open ended skill growth is an essential trait I am looking for, a mud with such depth of skills et cetera that my character wont run out of things to study.

Armageddon is set up -exactly- as you describe. However, it is an RPI - with the accent on "intensive." It's also permanent death, and you can't play a mage with your first character. It isn't an option. Magickers are considered "karma" skillsets and you have to earn the karma to play them through your roleplay. The staff watches the game, and award karma to people who have shown they can handle the responsibility of more intricate roles. The "classes" are -not- balanced, this is intentional, and for that reason, only people who have shown responsibility can play those roles.

If you don't mind getting your feet wet with some more "mundane" skillsets, and learning the ins and outs of the game, the politics, etc. etc. - with your first few characters, I would highly recommend Armageddon.

Yeah, I took a look at ARM, I like it a lot, save for the karma system. If only there were a way to maintain an ARM like class system but do so without karma. Perhaps by making the higher classes very weak for longer and longer periods at the beginning. (like apprentice psionicists spending years training the basics before their powers bloom, that sort of thing)

You might come and try Dartmud. We're classless and levelless and one gains skill by using the skills. While we're not an RPI by Arm standards, we do emphasize RP and separation of IC and OOC, and a character like you describe would fit right in. One word of warning, we also have permadeath (though that can be put off by certain devices) and have unrestricted PK, (though PK is much less common than other places that allow it).

A young mage usually learns magery from another PC who teaches them the basics, and gains spells (which are also skills) from spellbooks. Spellbooks can be found in quests or acquired from another mage (usually for a price).

We also have an extensive crafting system, three guilds* that accept mages, and four noble houses.

*Guilds are entirely player run associations of characters and have nothing to do with what skills you can and cannot learn, unlike most muds.