Hi Ryan,
The language permit does not allow you to work. You however have to prove that you are able to live in Germany for the period of your visa ie financially stable. You may show proof by showing your bank details or your parents can say they will be responsible for you or even your girlfriend can say she will be responsible when you are in Germany.
You need to register for the course first and be sure it is one where you have at least 20 hours a week. Then when registered take the confirmation letter you recieve to the embassy with all other required paperwork. Consult the German Embassy to find out what you need. They will give you a visa valid for the length of the course and this can be extended once you are in Germany and each time you register for a new course. The process can take about one month. (I recommend the Volkshochschule for doing language courses, they are the cheapest.)
As for your question about Universities in Saxony. I am not familiar with that area but you can do a search through the internet. Most Universities have an English site as well. It may not provide as much information as the German site but enough so that you know how to apply.
Once more good luck and let me know if I can be of more help.
Suzette


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