Been trying to use the grindstone for awhile now, in whiterun, both at war maidens and at the skyforge. The issue is when I go to make it into a Fine weapon, I select the weapon I want, get the option to press "R" to craft it, and then nothing happens. For example trying to make a fine iron dagger (have 6 iron ingots) or a fine steel sword (also have 6 steel ingots) I have the required materials, just nothing happens when I press "R" to craft it when it tells me to. Am I doing something wrong or is this just a bug?

Is your Smith skill high enough?

The craft key will still show even if you are not at the required skill.A little message pops up somewhere on the screen informing you it isn't but unless your paying attention you won't see it.