lenatweb made a good guide for alchemy already (
here) but heres mine too:
You may have noticed new items lately. They items are part of the
new alchemy. Seems confusing right? Well let me break it down:
Red= Monster by products (Drops from monsters) Pink= Tablets.
First starting with the drops from monsters. These are called monster by-products.
You take what you find from monsters and buy void rondos at the local grocery. Then hit 'y' in game and put the void rondo in the first box and the monster by-products in the boxes to the right. IMPORTANT* You must have space in your inventory. After you hit fuse you get elements.
What are elements for? This is where you need tablets.
To use the tablets you have to gather the elements it requires (hover you cursor over the tablet). Example: In order to make a stone out of this tablet you must get 110 earth elements 3rd, 46 water elements 2nd, fire elements 1st, and wind elements 1st.
When you have enough you fuse the tablet and the elements to become a stone. To fuse it place the tablet in the very first box and all four elements in the boxes to the right. The stone will have a percent and that percent is the chance of success. To use the tablet you can fuse it with a item the same degree and type of item the tablet allows you to fuse it with. Remember tablets have to be the same degree as the item. So a level 8 tablet goes with 8th degree items. Hope this helped.
-shizhensi