Find some mithril for the blacksmith to work with.
A mithril dagger.
Find the thief who stole the blacksmiths hammer and then return it to him. Then locate a mithril dagger for the blacksmith to reforge for you.
The way to tell if A mithril dagger has been reforged is as follows.
look dagger
The dagger has not been reforged if it says At first you mistook this weapon for being made of silver, but closer inspection reveals the true substance of this dagger: mithril. The weapon looks clumsily made, however. It is ancient and slightly bent, obviously of human make. The truth that pure mithril is as soft as copper is apparent. Only a skilled smith used to working with mithril can unleash the true abilities of the metal. Nevertheless, the rarity of mithril makes this dagger worth a small fortune..
The dagger has been reforged if it says At first you mistook this weapon for being made of silver, but closer inspection reveals the true substance of this dagger: mithril. The weapon looks as though it's been reforged. It is ancient, and you can see where it's been repaired. The truth that pure mithril is as soft as copper is apparent. Nevertheless, the rarity of mithril makes this dagger worth a small fortune..
You may not have to do this part of the quest as it may have been done.
ask smith about hammer
If he says Blacksmith says in Westron: Yes yes yes... I know, I know. Turn your back for a second, and it's gone. That was my best hammer, too. I use it to work with mithril; well, I used to use it to work with mithril. We don't see much of that anymore. My best hammer... stolen by a mere child. What's this world coming to?! then you will have to find his hammer and return it, if not you can skip to the the part of this quest where you head to Mordor.
If you need to find the hammer you are going to have to search the streets of Caras Galadon for A fidgety little elf. When you find him.
kill elf
When he is about to die he will drop the hammer is is carrying and run away Suddenly, the fidgety little elf begins to cry. With tears in his eyes, he drops a hammer on the ground and runs away..
get hammer
Now that you have A blacksmith's hammer you should return to Stables where the quests starts.
give hammer to smith
The smith will thank you and give you between 100 and 110 gold.
Now you are going to have to find some mithril for the blacksmith to work with. This is the most dangerous part of this quest as the mithril dagger that needs reforging is in Mordor, close to Cirith Ungol.
First you are going to have to get into Mordor.
If you choose to get in via Getting into Mordor via the Black Gate do the following (You will need to be either disguised evil or truly evil in order to pass by the checkpoint in this route).
do 4s,2e,4s,e,s,sw,2w,sw,s,se,s,se,4s,u,s,7w,n,3w,nw,w,nw,n,2ne,e,ne,e,3ne,n,ne,2n,nw,2w,sw,se,s,2sw,w,sw,2w,sw,4w,sw,2w,sw,3w
If you choose to get in via Getting into Mordor via Shelobs Lair then you end at the right place.
You should now be at The entrance to Shelob's lair.
You should now patrol the following route until you find A nasty, slobbering orc.
do 3e,ne,2e,ne,4e,ne,2e,ne,e,2ne,n,nw,n,ne,2e
When you find the orc you should look at him, there is a chance he has A mithril dagger, if he does not then continue looking, if he does kill him.
kill orc
When he is dead.
get dagger from corpse
Now you should get out of Mordor and return to Stables where the quest started.
give dagger to smith
The blacksmith will thank you and reforge the dagger for you and give it to you.
If any of the information here is missing, or wrong, please let us know.