I haven't played this game since it came out, I really can't remember anything about how item creation works. Does anyone know how the creators in Erathia use the ore? Is it one piece of ore per an item. Are the items created random (based on what ore you have) does the amount of ore you have determine the item you get? Any help would be appreciated.
Those people will use the ore to create weapons, armor, etc. Each piece of ore you have can be made into one item. The better quality the ore, the better quality item and the higher probability it will have a good enchantment. The light green laced ore is the best early on, and eventually you'll find a yellow laced ore that can make the best items, but by then you will probably have better gear.
You get one piece of armor, one weapon or one item per piece of ore. The amount of ore you have does not affect what you get. The items are entirely randomly generated for each type of ore (better ore gets you better things). It's kind of cheesy, but I tend to resort to Save/Reload to get the best things when exchanging the top kind of ore.
Yeah, you can get some pretty strong equipment quite early in the game by doing this. My last playthrough I got some Regnan Leather like... right away. Also some daggers and other thingies. I always feel bad when this happens, since I feel almost like I'm doing the Warp Zone cheat from Mario. Skipping over all that content, going right to the good stuff. =)