I emailed you the inventory files from my game just after getting to the imp village. I explored the entire village and did a few of the quests before trying to leave and getting summoned, so I think that save point would probably be the best match for your game.
If you wish you can drop your gold, etc and save, then swap the act 1 inventory files with mine. The inventory files from your save once you reach act 2 would also work.
Alternately, you can just keep going, though you might have to use the inventory swap procedure if you run into any more problems like the missing teleporter stone from the imp historian.
While in the BF the 'exit BF' icon always displays level 1; in the main game the 'enter BF' icon should say level 2. If it doesn't, I'm not sure why.
Did you find the axe on the third level of a dungeon, and does it exactly match the name in the quest log (or what Keith asks for)? Try dropping the axe on the ground, have your hero pick it up again, and then talk to Keith. Rarely an NPC can not recognize that you have an object (most often when you find a quest object before getting the relevant quest), but dropping it and picking it up in that case should help.
