My advice would be to go outside get "good nights sleep" at joram's house then buy some potions from lanilor to heal yourself. go outside and fight all the orc warriors and crossbow orc's you can without dieing. but if a heavy orc is there run like hell to Seth and let seth kill him then take whatever the orc drops and use or sell it. Also when you do give the axe to Smiruk it should be a glowing level 4 axe, and if you have anyother axes on you that you want to KEEP do not give him slasher because he will take them all... also dont follow the orcs up that ladder until ur alot stronger.