The instument would not be wielded, but most likely placed in one of the Charm slots. Other classes get class-specific items to put there, Bards should get the same.
Bards in EQ1 were the masters of kiting - no longer in EQ2. Once you engage combat, your movement slows to a quick walk. The mob will easily catch you.
EQ1 Bards could also run like lightning - again, not so here. You have run speed buffs, but not the god-like speed in EQ1.
You can run while casting most spells, and many (if not all) buffs last until cancelled. Bards have some of the best party buffs around, and you don't need to keep casting them (I forget the EQ1 term - weaving?).
The spell casting is a wonder to watch, as musical notes and a cresendo of harmony fills the air. Like all spells you have a casting time, power cost, duration, range, etc.
Some spells take Concentration to maintain, and you have 5 concentration slots to manage. Some buffs take 0, some take 1, some take 2, some take all 5. I usually run around with 4 concentration slots filled with party buffs.
You manage your buffs based on what your party is doing. Run and power regen buff is up between fights, combat buffs come up right before a battle. Use damage spells during combat (they do not take a concentration slot).
One big benefit in EQ2 is that you can have as many hotbars up as you want. Unlike the 8 (?) buttons in EQ1 when you had to carfully choose what spells to have available, now it is limited only by the real estate on your screen.
I typically have 4 hotbars (12 buttons each) up, plus 3 chat windows, party window, exp bar, clock, quest window, and buff window.