Go back to where a log was hanging in the ceiling. There is an elevator around there.

where's that? Is there something about making a better sword in that fire place? How do i do it?

I am confused

In the second level of the game you should have forged your first sword already, i guess you skipped that then.

Your first picture: if you picked up every item so far, you should be carrying a gold and a an iron bar. Go standing as close to that bucket (or pan) as you can and the bars will appear for you to choose from. Look at the equipment (wheel, fire, the blower at the left side...) , should be very easy to find out how to make a sword.
With gold you forge a Fire Sword (pretty powerfull).
But if you're not carrying any metal bar, forget about forging a fire sword. You find such sword later anyway.

Wow that's good news that you can find the firesword later on. I have forged the longsword but couldn't find the gold bar. But I did have the iron bar.

There are two flamegold bars in the game, the first one is in the boat, just after the goblins, hidden with a magic ring (of might).

I have the ring of might. I must of missed the gold bar. THis is only my first time playing it so I will collect it next time round when if I finish it this time.

Without the flame sword seeming as I haven;t forged it does it make it trickier to progress through the game?

Trickier yes, but don't forget you have much more weapons (bows!) and other means (kicking, objects) to kill your enemies, and your skills increase. And the trickier the more exciting, no?

Well mr blindnero I am not very good at the game. Also even though the game allows you to kill your enemies in a variety of ways by using the enviroment I just go for chopping their heads off.

I always forget to see if there is barrels or otehr enviromental objects i could use. Like most of the time I don;t even think of kicking them into the fire or into spikes or off ledges. It like Charge with the sword and hope for the best!!!

Well, chopping heads off as quick as you can maybe is one of the best practices to become good at the game. The firesword is not the easiest: caused by the physics of fire, slashing goes slower. Just as powerfull and quicker at the same time is the Souldrinker which you should have found up over the higher bridge in picture 2 (in post 1) in the waterpool under the staircase...

i don't understand what the souldrinker does can u explain.. i have it im now at the point where u get all the skeletons and u have to get the 3/4 things for the altar of the spider

Yes there's the second Souldrinker sword as a secret. It is not only easy to use and very effective, it also takes a little health from the victim and adds it to your own health.

I think I could beat the game only with the short sword... Now I am so much a killer, I own everything with style, class, and... thats it...

No you can't, VK. You also need a simple bow and the rope bow ... and i prefer the long sword, and then yes that's all you basically really need.