1: its a sliding bar minigame, you have to hold control and left click while the weapon is hot and on the anvil. Prices arent effected yet by quality.
2, Pickaxe heads are under Axes and take three bars
i know we have to hit it again but when i try make the pickaxe it just goes to the sliding minigame as described by the other guy. i try to make the mithril pickaxe and it gives me the axe(2 headed) and it doesnt let me hit it again to change it but instead i hit it again and it gets the quality minigame up...