sounds like you're doing it all right...
with the mirror, perhaps try dropping at another place? (i did the talking crystal). and then you made sure to walk back to the seeing stone and 'look' again?
with the smith, did he actually tell you you needed the ore to make the sword? i got the quest from him BEFORE i picked up the ore (maybe you have to, don't know).
if you have a save prior to taking the ore, see if talking to the smith before taking it (the ore) will start the correct path. you could also try removing it from inventory prior to taking with him, but it sounds as though you've tried that.
