So, not sure if this is a glitch or if I am just doing it wrong... but I have two dragon souls to spend and it won't let me use them to unlock new shouts. I know the Become Etheral word but I can't unlock the shout for it, same with Disarm.

Anyone else come up with this problem? Do you know how to fix it?

You have to go to dungeons with the dragon words written on them to learn new shouts... the souls you absorb enable you to use those shouts, and i think there is 3 souls/levels to each shout, each level making the shout stronger.

In the Magic -> Shouts menu I believe you have to press R to spend the soul to unlock whichever shout you want. If its not R, its listed down at the bottom left.