Okay, I've made it as far as Nordrilund and did yet another quest where the NPC (a smith in a cave) says he's going to make me the best sword ever forged (or something to that effect). But after the quest is done he says, carry it with you, but you don't actually receive a sword.
In Hrundle Fjord it was an amulet from the raven Morn, then the other guy who says you'll get neat seeds from him, and now this sword. It's making me wonder what's going on. Did I miss some connection somewhere?