Quest: Defending Dargun
Like stated at the end of the previous step, starting this quest will result in an event that will spawn many a dwarf. Make sure you are ready before you start this.
NOTE: There is a known bug that happens when multiple people start this quest at the same time. If more than one person starts this quest, than multiple instances of the event spawns on top of each other, making it extremely hard to complete successfully. The work-a-round would be for one person to start the event and let the ghost dwarves kill Dargun, then the next person can start the event and let the ghost dwarves kill Dargun again, and so on and so on until each member of your group has started the event. This will allow every member of your group to get the update for when you complete the event.
Now after the last person has started the event, you will see Dargun walk towards the corner, a ghost forge will immediately spawn in the corner with him, and he will begin to forge the weapon. At the same time, lots and lots of ghost dwarves will spawn at the other end of the Royal Chambers (NOTE: if the event does not spawn, get one of the people on the quest to inch their way towards the other end of the Chambers, watch out that you do not get aggro when the dwarves spawn).

After a bit of time, 3 Dwarves will start making their way down the center path of the Royal Chambers towards Dargun. Your group will have to aggro the 3 mobs and make sure they do not kill him (each dwarf will be level 37-38 4dot). After you slaughter the 3 Dwarves, you can relax for a bit and gain back any lost hp/energy. Eventually another round of 3 dwarves will make their way towards Dargun again (all 37-38 4dots). Intercept these dwarves and take them out before they kill Dargun. After they are dead you can relax one last time. The final round will eventually start walking towards Dargun. This round will include a named mob named Ragnak Runeaxe (level 38 5dot), who will be standing in the middle of 2 other dwarves (both level 37-38 4dot). Now, when you kill Ragnak Runeaxe, it will update everyone's quest (woohoo!). Right away, Dargun will have finished forging the hammer, and will walk towards the middle of the Chambers and spawn a gigantic portal near the ceiling and disappear shortly after.
NOTE: If you fail the event, then only one person will have to abandon the quest and accept it again from Dargun.
Dargun Thunderaxe will respawn in his spot next to his chair. If you talk to him he will reward you with one of 5 weapons. Take your pick of these ultimate weapons. Nobody will ever forget this heroic deed you have accomplished this day!