Total beginner - e.g. What's cut and paste and where did my file go? 
Novice - I can load and save files, cut and paste, and don't run into many questions using programs. 
Intermediate - I know or have heard about the following: DNS, IIS, Apache, SQL or MySQL. 
Advanced - I work in the industry and/or have advanced knowledge of computer systems in general.

Beginner - I have a few problems sending and receiving emails.
Novice - I can send and receive emails just fine.
Intermediate - Not only can I send a receive emails, I have no problems with incoming or outgoing attachments.
Advanced - I have/can write email rules to do just about anything I need to do with emails. 

Beginner - I have had things explained to me several times and I still don't really understand.
Novice - I'm ok but sometimes have to have things explained to me a couple times before I "get it".
Intermediate - I can usually figure things out on my own through searches or the help files.
Advanced - I could easily teach computer application or OS courses.

Beginner - I don't use any office-type applications.
Novice - I can create a letter in a word processing program.
Intermediate - I consider myself fairly fluent in most desktop applications.
Advanced - I commonly write macros in office applications to save time.

Beginner - What's an "OS"?
Novice - I can follow instructions pretty well if they are clear. I can do simple things like installing printers.
Intermediate - I have spent some time in control panel and device manager (or the equivalent on a MAC)
Advanced - I can pretty much do anything necessary to get my computer running well.