I'm not sure what exactly I'm doing wrong. I have all the materials I need. Forge level as well as skill level for the item I want to create is where it should be and I still can't upgrade past the second level of farming tools.
It's getting me really pissed off. I mean, the only thing left I can imagine is upgrading my forge to a bigger one or my character level isn't high enough. No walk through I found made any mention of either of those two things though.