You get to the foundry from the Lower Ward.
You enter the Foundry by talking to the guard through the gate, either with a quest from Giltspur or with your foundry receipt. You should really wait to go in here until you have both.
In the main room is Thildon, who gives you ore. He's afraid to talk about the smith. To the east is Sarossa, sister to Saros. Further east is Keldor, who you deliver Giltspur's message to. He says the Godsmen are against the Dustmen, because they feel life is a testing ground. If you wish to join them (renegging any other allegiances), you have to do 3 quests.
First, you have to create an item. Talk to Alissa Tield, who tells you about the things you need. Go south to the clerk, Nadilin, to buy the apron, tongs, and hammer, and get the ore from Thildon. Also, trade in your receipt ("legacy" for 40,000xp) for an unfolding portal. Undoubtedly this goes to the hag, as per the messenger stone in the Civic Festhall.
Go to the empty forge. Ready the tongs, put the ore in the flame, and make an axe. Show this to Keldor for 8000xp. Now he wants you to find the killer. Smith is dead. Thildon blames Saros and says Bedai-Lihn is an Anarchist. Alissa says it's either Thildon, Saros or Bedai-Lihn. Saros gives you a handle with Theldon's Name (10,000xp). He's conspiring with Anarchists, the folly of youth. Turn in Theldon for this one.
The third quest is to show Sandoz his life has value - his room is upstairs to the east. Talk to Sarossa, who has a thought for him. Tell Sandoz for 12000xp. Now you take the oath for 8000xp and are a Godsman. You get the token for the secret project. Show this to Alissa to get the gold medallion, and enter the large doors to the north.
Kel'lera is a githzerai who tells you the weapon makes a magic fire that can harden the shell of limbo. You probably need that. The token gives you immunity to the baatezu. The weapon won't be done for a decade and is in a critical phase. The workers say that if the weapon has any problems, they will die.
Talk to Sarossa again for a +1 Wisdom increase.
Upstairs is Bedai-Lihn, who is against making a weapon. Tell her you're not happy, and she asks you to destroy the weapon by putting metal into it. You ask about the workers, and she doesn't care at all. Turn her in to Keldor for this. The libraries up here are all empty.
Saros is in the main hall with Keldor. He wants to be a Sensate. He is the one who killed the smith.
To the far east is Nihl Xander, who built you a Dreambuilder. He needs your skin in blood in a blue-green bottle to finish it. Go to Pestle in the Upper Ward for this. Next he wants a razor birdcage. You get this in the seige tower. Finally, he wants a coffin pillow. Go to Hamrys for that one. You now get 16,000xp and a key - a feather - which gets you in the leftmost door in the main room.
After all of this, you go intothe room and dream various bizarre dreams, including one of Ravel that wants you to go to her. At this point you should be done with all quests that are open, and ready to use Ravel's portal. You should have the blood from the brothel, the portal from the foundry ... you can use it right here in the foundry to go visit Ravel's Maze. Be sure you're ready though - you aren't coming back for a while. Sell off anything you don't need.
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