Yes, you should definitely be whoring. Read
Homer's Building a Bankroll for Newbies .
Your question on when to move up is an excellent one. In general the answer is that if you start at the appropriate bankroll then play until you win 300-500 BB for the next level you will probably be ready to move up as long as you feel comfortable. However, bonus whoring can confuse this issue as you make a lot of extra money that you didn't really win. Sure you got it from playing poker, but you didn't take it from the other players so I highly suggest not counting your bonus whoring winnings as money you've won. Use it for tournament money or withdraw it or leave it in but make sure not to move up until you are ready.
I like the staggered approach to moving up. Let's say you have $300. That would be 300 BB at $.50/$1 so you play at that level. The next level being $1/$2, you're looking for $600 before you move up. You might actually start to dabble in $1/$2 when you hit $500 or if you're really feeling confident maybe even $400. You wouldn't play $1/$2 all the time, just start trying it out maybe every third time you play until you're winning at that level. If you hit a bad run or have trouble adjusting and drop down to under $400 then switch back to $.50/$1 until you hit $500 again. Rinse. Repeat.
The reason I like this method a bit better than strictly waiting for 300 BB at the next level is because levels can be surprisingly different in how they play. In particular I noticed a strong difference between $2/$4 and $3/$6. It's not just quality of opposition either. Even the bad players play differently at different limits. If you hit 300 BB and then just switch limits cold I think you're likely to struggle at the new level.