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I'm in act 2 and I don't know how to make steel sword from meteorites or silver sword from runes. I go to dwarf blacksmith and talk to him and i open the window and there I can only sell weapons. I try draging runes on my sword but it dosen't work. Ant help?

This confused me a bit as well at first. You can't actually upgrade your steel sword with meteorite pieces. However, if you have 3 pieces of any color there will be a sword you can buy in the list of items the smith sells. The type of sword depends on which runes you have, there are a lot of combinations.

I don't believe you will have enough runes to upgrade your silver sword in act 2 yet. Once you have 3 runes of any color you will be able to buy an improved silver sword from a vendor much the same way as the steel sword.

thank you very much!

for a steel word, theres a great one that you get from a corpse, its better than anything you can craft (for now, act 3)... ive found it by luck

in the swamp, go north, there youll find a wyrven camp (not the royals) and theres a human corpse there, when you loot it, you get alot of gold and that sword

enjoy
-Kim

I created a upgraded silver sword in chapter III. I'm not sure that it can be created earlier.