Water to wine... nothing similiar.
In Grandia you have levels for Weapons and four types of magic elements... a combination of all these level give you news magics or skills, he magic/skill are unique per character... so if you have Sword lvl3 + Water lvl 2 you receive the Skill X... Earth lvl4 + Fire lvl 7 = Some Wind Magic... there are a lot of combinations for every char and you can choose the path to level up your char.
Now do you want that I describe the materia system?
All I meant was that you could level up your abilities in battle with the limit break and materia, not to mention that materia changes to new effects at some points, and you can combo different materias to create new abilities, then you have to use the right armors and weapons to maximize AP gain and effectiveness in battle.
Sure it's not half the system grandia looks to be, but it was a great system that kept every battle feeling worth it.