If you have 4 craft and 5 blacksmith, you are at least level 7 - what do you want to do with cloth armour???? But if you think cloth armour = robes, it does not work with robes. And as youcan see here: http://www.larian.com/forums/ubbthreads.php?ubb=showflat&Number=526585 metal scraps on any armour need crafting 5.

Regards,
Thorsten