I have a question about the last step jerich..
I've been able to replicate everything you did except the last step, my dagger shows as 171 damage and sword shows 518 damage just as you posted in the second last step. What potion/buffs are you using to increase your damage so much? I used a potion that increases one hand damage by 130% but I know that wouldn't affect dagger damage so I must be missing something.
I was rushing on that last step, and just chugged a 130% archery, 1 handed and 2 handed potion. Dagger damage seemed to go up when I moused over it.
For those of you who want to replicate this before they invest the time into doing this with a character legitimately... here are some console commands you can use:
Raising Skills:
AdvSkill Alchemy 100 - Simulates using the Skill 100 times. You can change the skill name and the number to level up naturally (doesn't screw up stats)
Smithing:
player.additem f 10000 - Adds 10k gold
player.additem 2e4ff 10 - Adds 10 grand gems
player.additem 3ad5b 10 - Adds 10 Daedra Hearts
player.additem 5ad9d 10 - Adds 10 ebony ingots
player.additem 877c9 1 - Adds a diamond ring to enchant
player.additem 877f1 1 - Adds a gold neck
player.additem 3ad53 5 - Adds 5 cave bear pelts (which you can use to make leather)
Alchemy:
For crafting potions I use Spriggan sap, snowberries and glowing mushrooms.
player.additem 63b5f 10 - 10 spriggan sap
player.additem 1B3Bd 10 - 10 snowberies
player.additem 7ee01 10 - glowing mushrooms
For Heavy armor + block potions I use
3ad70, 134aa and 3ad61
For two handed swords I would use
4da00, 889a2, ec870
For archery / one handed I would use
6abcb, 5076e, 6bc02
I'll try to add some hints for leveling up the legit way in a bit.