Shadai:
Greetings, traveler! I am Shadai of Hellbound, the legendary Dwarven blacksmith. Ah, I know I may look a bit shabby, but you mustn't judge a sword by its sheath! Ha ha ha! You are a lucky fellow, my friend, to have bumped into me. Interested in turning that luck into wealth? I'll make you a deal: if you get me an item I need, I'll use my skills to craft you something.
Ask about Ancient Text of the Demon. Process the cursed Seal Stones. Exchange a shoulder ornament to enhance the power of armor. Enhance power of armor. Remove power of armor. Quest.