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Neverwinter Nights Hints
Forge Ingredient Notes
Even though there's no one like Marrok in Chapter 2 who can forge super magic items out of regular magic items and magic ingredients, it's worth your while to save up items and ingredients for Chapter 3, in which Barun Silverblade will offer the same service again.
Magic armor and weapons can be found and bought in a huge number of places, so I'll just list where I found the magic ingredients in this chapter.
Fairy Dust
* in an armoire in a room on the top floor of the Alliance Arms Inn (Port Llast)
* from pixies and grigs in the Nymph's Home and the Realm of the Spirit (Neverwinter Woods)
* in a trapped bookshelf in Karlat's Chamber in Castle Jhareg (Charwood)
Gargoyle Skulls
* from gargoyles in Wanev's Cottage (Port Llast)
* from gargoyles on level 3 of Mutamin's Challenge (Green Griffon Inn)
* from gargoyles on all three levels of the Creator Race Ruins (East Road)
* from gargoyles in Wanev's Tower (South Road)
* from gargoyles on level 3 of the Host Tower (Luskan finale)
Ironwood
* on a trapped bookshelf in Karlat's Chamber in Castle Jhareg (Charwood)
Dragon Blood
* in a chest of drawers in Karlat's Chamber in Castle Jhareg (Charwood)