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Is there a certain amount of materials you can use on one character, if so how many. I dont want to waste them on HP materials, which in my view are pointless!

Hp and Tp materials come into their own total max. Each class has their limit you can find out what they are here

http://www.ragol.co.uk/characters.shtml

Every race can use 125 Hp and Tp materials (androids of course cannot), for LCK/ATP/MST/EVP/DFP materials (the number of these used materials will get added up together) the following goes;

Androids maximum material useage; 150
Newmans maximum material useage; 150
Humans maximum material useage; 250

All HUmans and Androids can all be maximized, Newmans on the other hand cannot because they have a low maximum of material useage and do have the stat MST that androids don't.

Damn. guess you got to the chase first.