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Overview:
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Upon asking how to smith Daedric ebony, Sirollus Sacchus will tell you that no smith other than Hilbongard and Dorach Gusal have ever smithed Daedric items, and like that pair, any smith would need to partner with a powerful wizard to have any hope of crafting Daedric ebony. After this, the player can talk to Divayth Fyr, who will reveal to the player that he just so happens to be in possession of Hilbongard and Dorach Gusal's notes.
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Upon reading the notes, the player will learn that they need to make a Daedroth's (willingly or not willingly?) surrender their soul to transform ebony into Daedric ebony. Divayth Fyr will inform the player that he's been keeping a Daedroth trapped in a pocket dimension for this very reason. He allows the player to enter the pocket dimension and see if they can convince Lord Dregas Volar to relinquish his soul. (Method TBD)
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When the player binds Volar's soul to the ebony in the pocket dimension and returns to Divayth Fyr, he will tell the player to move onto the next step: summoning a flame atronach to produce fire hot enough to smith with the Daedric ebony. The player goes and does that, somehow - probably in the process of finding Hilbongard's forge.
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[any other steps]
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When the player has completed all of the preparation and activates in (Anudnabia) Hilbongard's forge, they will be able to smith a single Daedric item - the Daedric Face of Inspiration. If the player returns to Divayth Fyr, he will tell the player that they can keep the helment on loan as payment for helping him, and that he is content to simply retrieve it once the player's life has expired.
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Sirollus saccus offers the notes to smith the armor if you are able to obtain daedric ebony
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In order to begin daedric ebony, player must be level 100
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Logical progression: go to Sirollus, ask him about daedric ebony. Will tell you what he went thru to get notes. Gives you a copy. Says you need a powerful wizard and smithing, notes not good, player needs to find role of Dorach Gusal. Ask him if he knew Dorach Gusal or daedric smithin. Give copy to Divayth Fyr to interest him.
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Divayth has Dorach Gusal's notes, they were colleagues. Go to him, he shares notes from Dorach Gusal and promises that if you repair daedric item (has a crazy backstory of why it was broken), he'll help you.
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Divayth Fir
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Good friends with Sotha Sil. Very confident, but can back it up. Can be somewhat benevolent.
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Working on cloning experiments.
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Maybe he's put this project on the back burner?
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Bored, looking for something interesting. Player is interesting because he/she was "cured" of corprus.
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Has four "daughters" who think of themselves as wives. They take care of him.
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Divayth fir is adopted father figure of Master Aryon (father imperial, mother dunmer)
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Perhaps has interesting insight to Daedric psyche (mindset), learned from Dorach.
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Dregas Volar
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How you get the Daedric crescent
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Can get the crescent at level 1 or 100. If haphazardly gotten, Divayth reveals nothing about daedric ebony to player other than they "have been an immense help"
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Crescent obtained through actual Daedric smithing quest, Divayth sends player to light Anubnabia forge and fix Fearstruck shield to prove you can do it! After you turn in shield, Divayth hides it in a locked chest in Corprusarium giving player option to steal alter. Player receives daedric ebony and can go smith mask of terror.
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Before daedric smithing quest, player cannot pick up finished daedric ebony. Divayth prattles about powerful burden spell he cast on it.
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