I beat the great (or was it ancient? the one in wk lvl 5) wyrm, and i got dragon's bane and was looking forward to forging Dragon Lord. I then pocket planed it to see Cespenar but when I got there, the item was completely missing from my inventory. Has this happened to anyone else?

Don't tell me that you have played the game so far without installing the hotfixes. Visit the Progress Report for IA v6 topic. In the first post in that thread you will find the links to hotfixes.

ah...yes, i have been playing that far into the game w/o the hotfixes. meh. i didnt have a save to go back to after i installed them right now either. oh well. lesson learned i suppose. =/