Im still confused on how to craft the armor/weapons. I heard you need to have the bony perk to forge it which I have and so far no matter what I do it doesn't pop up in the menu. Any one know how to craft it?

you need to do the quest in solstheim ( can't spell it properly ) and get the Iron-shaper fella from the Skaal to tell you.

Is the quest located in the skaal village?

yes