What do I do with a bitcoin I recieved? I was given 1 bitcoin in a paper wallet as a gift.
How do I now convert this bitcoin to spend it?
You can buy all kinds of things from https://www.bitcoinstore.com/

You could also buy gift cards using bitcoin at http://www.gyft.com/

Finally if you want to sell your bitcoin for your local currency, you'd need to open an account at a Bitcoin exchange such as https://www.bitstamp.net/ - however this is the solution I like less because they require you to send them some personal information like your ID or bank account information to overcome fraud.