the anvil is in one of the graves...after u dig up a skull...hit the grave with a pick again, and u have the anvil...this is the grave in the middle...the one with the 5 scorpions and trees in an arrow type position...make sure u have the amulet...as u will require that for the ghosts...good luck
: : cant find the anvil in 3rd story...looked all over ....what am I missing?...looked all over town & plateau.. :(
: I believe the blacksmith has it... Maybe you'll have to force him to give it to you...