Sorry, I'm not meaning to "bump" this, as I think, bumping is quite impolite but I'm seriously concerned, that you might scrap this whole post at some point/ have done it already and I'm the one, who kinda got this one here reactivated because I REALLY REALLY like this idea and where you were aiming to go with it.
Please don't scrap this script, it really has a lot potential as I think the blacksmith-part in general hasn't got its fill yet in the variety of scripts available for the RPG XP.