Ok - these are the steps I took and it seems to work:
1) Starting as a level 1 Sorcerer, select the Human Sorcerer favoured class option on the 'classes' tab (usually defaults to '+1 spell known: 0' in the drop down box. Under 'customize favoured class options' there should now be an entry 'Human Sorcerer: +1 Spell known: 0' appearing. TIP: click the ? next to this for more information.
2) Go to the 'In Play' tab and under 'Activated Abilities' there is an entry called 'Human Sorcerer' some selection arrows to the left. select the spell level you want this to apply to. (e.g - if you know 3rd level spells, then you manually need to select either, 0, 1 or 2 depending on the spell you want to acquire. for a 1st level Sorcerer, we leave this at '0' as this is the maximum).
3) Now for the tricky bit (this has caused me headaches a few times and usually causes the errors/Red entries). Use this when you gain levels above 1. ***Important*** when you add a new spell level, leave the default selection (+1 skill point or whatever) in the favoured bonus box, then follow these steps:
a) Firstly on the 'Classes' tab under 'Customize Favored Class Options' click the black text 'Customize Favored Class Options' and this should bring up a box where the option is 'Human Sorcerer'. Select 'add and close'. You should now have 2 (or more depending on your level), entries under 'Customize Favored Class Options', but the new entry will usually default to a new level 0 spell.
b) Now we have to go back to the top of the 'Classes' tab and select the new 'Favored bonus' from the drop-down box next to the class level it applies to. You should now be seeing multiple selections available to you in this drop-down field (all labelled +1 spell known and the levels), but the new one you added will still read '+1 spell known: 0'.
c) Once you have selected the
new entry, we need to head to the 'In-Play' Tab again to tell Herolab what level the new option relates to. You should now have an extra entry under 'Activate abilities' and you can now select the level the new option relates to.
4) Once this is all done, select your new spells. I usually manually check how many spells I should have at each level to ensure I am not cheating or being undersold (got undersold once...grrr).
Note:steps b) and c) are a little tricky especially if you are selecting multiple level 0 spells. I had to guess which options on the in-play tab related to the options on the classes tab to ensure the right options on the classes tab matched the correct spell levels, but you will get there in the end.
I hope this helps you...took me a while to figure this out myself
Jaynay27