This is going to be hard to explain, but the hammer is way south in the cavernous system. Below the Midoro Swamp Palace is a save path that splits a wooded area. In one of these forest spots is a man by the name of ERROR who will say I AM ERROR and things of that nature. After that, go south through the bridge and find the Water town of Saria. At the very end there is a knight who will create a bridge if you know ERROR. This is all from memory, and if you can, this is also a great place to train.
As for the glove/gauntlet, it allows you to break the falling block cubes. This is beneficial as you can wait for them to stack up and then tunnel underneath without damage.
well, argani (sorry if i got your username wrong) i dont really understand what you are driving at cause i cant really see anything below the midori swamp that resembles what your talking about. And Darksombersky... Wow, that was the most informative and descriptive guide ever man.. Thank you. XD