You gain spellcasting levels as talents, just like any other talent in d20 Modern.
You roll a caster-level check to cast a spell, and regardless of whether you succeed or fail, you take ability-point damage. That damage is Strength if you're trained and Constitution if you're not. Having a high spellcasting ability score will soak a lot of this damage.
The downside of the system is that it lets casters fail to cast spells, which is kind of a bummer sometimes -- my players get around this by saving their action points for spellcasting, to REALLY make sure they get that caster-level check nailed.
The upside of the system is that it models most of today's popular fantasy-book magic better than Vancian or a simple mana system. It makes intuitive sense to players to have somebody get weaker while casting. It's decent at modeling, say, Merlin or Raistlin, but it's just as good at modeling someone like (to pull stuff out of my back pocket) Jordan's Rand, Eddings's Belgarion, or Hobb's Fitz -- the warrior who also uses magic, and who draws from his own strength for that magic, and feels tired later.
I use a few simple modifications, some of them based on Wulf's own suggestions here, and some of them to get the right flavor for my campaign. In one game, where I wanted less bookkeeping, I switched from ability damage to, well, damage, because taking a bunch of damage doesn't require the player to recalculate all of his attack rolls and Climb checks. That said, I've also used it as is, and it's been really successful. Makes the PCs think hard before casting a spell -- it's got to be important, like a major fight, in order to be worth it.