from dan simpson's excellent walkthru at
www.gamefaqs.net:
   Note: Unless I say otherwise, assume the item costs 5,000 gold to make.
       Most of these are found in the Watcher's Keep, unless otherwise
       noted.
   Case of Plenty +2  -- Case of Plenty
   Heartwood Ring  -- Oaken Ring              (Amkethran)
               Nymph's Tear           (Forest of Mir)
   Thieves Hood (better)- Thieves Hood
               Ring of Invisibility
               Antidote Potion
               10,000 gold
   Helm of the Rock  -- Helm of the Rock
   (better)        Horn (left)
               Horn (right)
   Montolio's Cloak   -- Montolio's Clasp
               Montolio's Cloak           (Amkethran)
   Wondrous Gloves   -- Bard's Gloves
               Star Sapphire
               Diamond
               Emerald
               Rogue Stone
   Blessed Bracers   -- Paladin's Bracers
               10,000 gold
   Circlet of Netheril -- Bronze Ioun Stone    (Vampire Nest, Saradush)
               Circlet of Netheril
   Golem Manual    -- Golem Manual
               Clay Golem Page
                & 5,000 gold
               Stone Golem Page       (Marching Mountains)
                & 10,000 gold
               Juggernaut Golem Page      (Abazigal's Lair)
                & 15,000 gold
   Improved Cloak of  -- Cloak of Protection +2
    Protection +2     Scroll: Invisibility
               Scroll: Improved Haste
               20,000 gold
   White Dragon Scale -- White Dragon Scales
   Blue Dragon Plate   -- Blue Dragon Scales           (Abazigal)
   Aslyerferund Elven -- Bladesinger Chain +4  (Dragon in Suldanesselar)
    Chain +5        Scroll: Protection from Normal Weapons
               40,000 gold
   Bag of Plenty +2  -- Bag of Plenty        (Marching Mountains)
               King's Tears
               10,000 gold
   Erinne Sling +5   -- Erinne Sling +4
   Fire Tooth +5    -- Fire Tooth +4
               Bowstring of Gond         (Sendai's Lair)
   Quiver of Plenty +2 -- Quiver of Plenty
               Rogue Stone
               10,000 gold
   Darkfire Bow +5   -- Bowstring of Gond         (Sendai's Lair)
               Darkfire Bow      (Capt. Erelon, Amkethran)
   Taralash +5     -- Bowstring of Gond         (Sendai's Lair)
               Taralash +4
   Runehammer +5    -- Runehammer +4            (Siege Camp)
               Rune of Clangeddin       (Sendai's Forest)
   Flail of Ages +4  -- Flail of Ages +3
               Flail Head (Poison)
   Flail of Ages +5  -- Flail of Ages +4
               Flail Head (Electric)         (Abazigal)
   Storm Star +5    -- Storm Star +3
               Starfall Ore  (found in Kiser's House, Saradush)
   Club of Detonation +5 - Club of Detonation +3
               Ring of Fire Resistance
   Hindo's Doom +4   -- Hindo's Doom +3
               Hindo's Hand          (Abazigal's Lair)
   Spectral Brand +5  -- Spectral Brand +4
               Skull of the Lich         (Sendai's Lair)
   Ravager +6     -- Ravager +4          (Yaga Shura's Lair)
               Serpent Shaft
   Staff of the Ram +6 -- Staff of the Ram +4      (Watcher's, Dragon)
               Roranach's Horn
   Axe of the     -- Baalor's Claw         (Marching Mountain)
    Unyielding +5     Axe of the Unyielding +3
   Ixil's Spike +6   -- Ixil's Spike
               Ixil's Nail +4
   Dagger of the    -- Dagger of the Star +4   (Watcher's, Demi-Lich)
    Star +5        Star Sapphire (5)
   Carsomyr +6     -- Carsomyr +5              (Firkraag)
               Eye of Tyr            (Sendai's Lair)
   Gram (improved) -- Gram the Sword of Grief +5   (Abazigal's Lair)
               Heart of the Damned        (Sendai's Lair)
   Purifier +5     -- Purifier +4
               Eye of Tyr            (Sendai's Lair)
   Foebane +5    -- Foebane +3
               Fflar's Scabbard         (Saradush Sewer)
   Angurvadal +5  -- Angurvadal +4
               Liquid Mercury          (Sendai's Lair)
               10,000 gold
   Sword of Mask +5 -- Short Sword of Mask +4
               Heart of the Damned        (Sendai's Lair)