Blacksmithy
Blacksmithing is the skill used to craft and repair arms and armor. Any character can learn the skill of blacksmithing but only those truly devoted will master it.
Crafting
After you have obtained some Ingots stand near a forge and anvil, double click either your smithing hammer or tongs. You will be prompted with a menu, choose the item you wish to craft. Providing you have the skill you will craft the item, if you are skilled enough you might even craft an Exceptional item. Items crafted will default to iron unless you specify another under the Metals menu.