Jeff, just watched the stream, great stuff!
Here is what you should probably know about how to spend your souls:
1. upgrading weapons and armour make much more of a difference to how strong you are in comparison to simply levelling up, and upgrading weapons is cheap on souls but requires titanite items which is the real bottleneck.
2. when deciding on how to level up, you should keep in mind that whilst there are a very large number of viable builds. As it is your first time through the game though, you should probably either focus on strength or dexterity, but not both as they have overlapping utility.
3. Strength lets you use the big huge weapons, dexterity lets you use more subtle weapons, such as that lovely uchigatana you murdered a shopkeeper to attain.
4. Endurance is probably the most important stat you can have because it gives you more stamina and equipment load: aka you can wear heavier armour, you can roll, attack, run, and block more.
5. Vitality gives you more hp, which is good. Blocking an attack, or dodging it via rolling is better.
6. Never get resistance as it is godawful
7. Attunement, faith, and intelligence are all related to magic and can probably be ignored unless you find a cool spell and want to build towards it. personally i think it is more fun to go hand-to-hand with a couple of cool spells that supplement my stabby-stabbyness.
8. There are very few flat out 'bad' weapons that you can get. They are all viable as they are all upgradeable. Moveset is very important. worry less about whatever attack statistic it gives but more on how it feels to use. Experiment and find one you like. Many people take that kitana you have right to the end of the game.
I just wrote way more than i expected to, but it hope it helps.
