I see that someone mentioned that Staves are altered by Enchanting? So does this mean that damage dealt by staves depends on your skill? And staves had around 20 charges before they had to be refilled in Oblvion which was not cheap, is the situation same in Skyrim or are they more economical/deal more damage compared to Destruction?

Focus on these:

Destruction
One handed
Enchanting
Restoration
Illusion or alteration

first off, if ur going to rp gandalf, u need to level him as gandalf would have leveled when he first started. that means going into resto and illusion. then speech, alteration, and finally destro. as a good wizard, he most likely started off as a healer/illusion type. his speech comes from being respected. he would not have learned anything related to battle and destruction until later.

also, just because he uses a sword does not mean he specializes in it...

Maybe alchemy too (although it comes under a thief-y skillset) as Gandalf created spectacular fireworks. Although we cannot create those in game, alchemy seems to be a nice skill, which may suit the character. Although, this is my personal opinion, and I am rather unsure, too. Just throwing it out there...

i guess it depends on the time period of gandalf u want. an early gandalf would have focused on magic like resto, illusion and alteration. a later gandalf would have focused on more combat-oriented things like destro and alchemy

"When he first started" would be (essentially) "when he stepped down from the angelic hosts to incarnate in the body of a human", and his power was pretty much set from the get-go - his (and the other wizards') power was limited by the terms that allowed him to incarnate in the first place.

He used his staff for everything because it was a required focus for his power - no staff, no magic.

It's also worth noting that immediately upon his arrival in Middle Earth, he was given one of the three elven rings by its then-current holder, who recognized what he truly was. (That he wears this ring never really comes up in the movies but it does in the books.)

In my person opinion:

One-Handed Weapons
Destruction
Alteration
Enchanting
Illusion

All set. Anything else you want is icing.

Gandalf is a http://elderscrolls.wikia.com/wiki/Spellsword except for the heavy armor.

Gandalf is a Wizard AND Grand Master of Lore-masters: (from wat I read anyway, if I'de RP him I'de do it as a lore-master.)
...
The Lore-master is the undisputed master of crowd-control: the ability to stun, daze and root creatures, thus keeping them from hurting his allies. He also possesses a wide and varied arsenal of skills that weaken and impede enemies, causing their strength to wane, their strikes to miss, and their actions to slow. The Lore-master's ability to debuff enemies, even in great numbers, is unmatched, and he is the only class with the ability to supply others with power. The Lore-Master's pets facilitate these functions by debuffing, tanking and distracting foes. These are the official niche of the Lore-Master and no other class can perform them better.

With traits, however, the Lore-master can become a high damage dealer, particularly for area of effect damage. The Lore-master also has the ability to serve as an off-healer and can cure wounds and disease.
...

This is what I suggest:

Dual-wielding Sword+Staff , using *Debuff, Crowd Control and Curing* spell, using Fire/Shock (NO Frost ) spell for main damage dealing and a pinch of restoration to heal urself... I may also add that lore-master are friend with the nature so anything that would give you animals pet would be fitting and fun.

Here's your Gandalf the Grey the Wizard Grand Master of Lore-Masters.



P.S.: I'm a long lime LOTRO player

Pray for a "YUUSH ALNAT PAAS" dragon shout. Epic.