And ofcourse the inventory at the beginning has to look like this, can't underestimate anything when playing hc...
With the scarf in my inventory I felt alot more motivated to continue on with my quest. I went and "borrowed" the sword blueprints, took 'em to the dwarf and he told me to go to the ICE cave. Sigh, all this trouble of taking off my scarf and now I have to put it back on.
But in the end, quest done and 32 smithing get.