1. The Drag and drop doesn't work for a Wetstone, an Anvil, and a Furnaces like you do everything else in this game.
You can drag and drop an item to another one in your inventory (as if you were trying to stack two stack of identical potion for instance). You don't necessarily need an external item such as anvil or furnaces for crafting purpose.
Exemple: Arrowhead + arrow shaft = arrow.
As for leather armor, you need to "boil it" (adventurer tome XII) This is done with a mobile kitchen (either in your inventory or outside your inventory). It can be further boosted with metal scrap.
Mace and staff can be boosted by a moonstone. Just drag and drop the moonstone on your mace/staff.
Be aware that most of the crafting recipe are not in any ingame book. So you will have to do a lot of trial and error if you want to explore it without help. I think this is a waste of time because the recipe are all but logical and exhaustive (eg: you can't craft a dagger from an iron bar).
