I must also say this:
Don't neglect the axes in the game.
The 'Axe of Hundred Crusades' that you get after killing a really nasty imp in the wastelands is simply awesome (in most cases it will also have a durability above 100). You also get a very good axe from a dragon.
You can use axes that you get in the Catacombs under Aleroth.
The best axe in Rivellon is that you get after the wicked Executioner (reached from sewers under the Stormfist Castle).
