Limbogirl, I know where you're coming from. I had a hard time grasping these concepts as well - to the point where I felt like my head was going to blow up from all the "crazy" ideas.
Here's my take anyways:
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...humans are a manifestation of our higher self.
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I get the feeling that much of your confusion has to do with the word manifestation and what it implies. It implies separateness, as in I am "here" I manifest something that is separate from me over "there". This is what confused me too, because I was seeing a "manifestation" as something separate, something distinct. (in a way it is-forget I said that for now)

Rather, think of it as we are both our "physical self" and our "higher self"
simultaneously.
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We come to this earth to learn lessons
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You did not "come to earth." You are both a "part" of earth and a "part" of the "divine" as you put it, in this very instant. There is no distinction of time and space between the two. Time and space is a product of the physical realm.
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...then why do we need to learn lessons?
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To say we need to learn lessons, implies that our higher self is trying to teach us something - it isn't. In fact, I'm not sure it even cares what you do. Shamou, said it well. We are not learning in a sense that we are "discovering" something, "bringing something in." Yet, the truth (all the knowledge we need) is "uncovered," it is exposed - we are remembering.
Why? Because like you said the higher self knows everything. We are a part of the higher self so we should know everything too, right? RIGHT - But why is it that we don't? Why does it have to be difficult? Well, what put it into perspective for me is this: The higher self knows everything and so it HAS to know what it is to NOT know. Thus we are "manifested" - NOT knowing. And since we are, at this very moment, both our higher self and our physical self - we both KNOW and NOT know at the same instance.
Just to clarify. I am no expert in "metaphysics," "new-age," "SR" or whatever you want to call it. In fact, I hardly know what those terms mean. Can all those labels fit into my view? Yes, and so can every other religion. My belief - "It just is."