I'm not sure if this has already been brought up or not but I finished the quest for the blacksmith and I am still unable to use him. I keep getting conversation topics but nothing else. Also I missed one of his talking points in the beginning because he was not even there so I don't think I'm going to be able to finish that challenge. Is there any fix for this? Or will I have to delete all my characters and start all over again? I'm on Xbox 360
If by completing the quest you mean that you've gotten the crown and went to the blacksmith to have it repaired, then yes you should have access to the blacksmith. My guess is that you're playing local coop with another character on the same console account. In that case only P1 of the account has access to the blacksmith. P2 will only get the talk option with the blacksmith.