The "lunar forge" stuff is glitched. They never fixed it. It's basically a pansy fire damage enchantment.

I bought Skyrim (PS3) when it first came out and put SERIOUS hours into it but haven't picked up the game in close to 2 years.  As much as I loved the storyline I couldn't stand the loading wait times which was up to 2 minutes in some locations.  It got old real quick.  I did love so many of the locations and the scenery is just amazing.  The overall scope is mind boggling.  One thing to keep in mind is that when you start one of the wars it unlocks the dragons and if you get to that point when you are a lower level you will get decimated at every turn...but if you avoid that war and go everywhere else and level up you will stand a much greater chance against the dragons when you start the war.  I would also typically quick save before making a critical decision as if I made the wrong one (which I did countless times) it was easy to just "erase" said bad decision and go about my way.

And then just wait till you get to the DLC's

Skyrim was just far to easy IMO.

Stealth/one hand sword/bow/illusion spells and the whole game is just zero challenge. Get in a bad spot... Just calm the big fellow down and walk away... Too many baddies... Just throw a frenzy spell on them and watch them decimate their buddies.

You can also get just retarded stealth and damage bonus armor from the Dark Brotherhood for basically just showing up.

I then thought well... maybe it is stealth that is just overpowered. So I started over rolling heavy armor/shield/mace with healing spells. So a nice basic paladin build should up the difficulty a bit and be a different playstyle. It was an even worse face roll = win build. It even became easier once I finally realized I can get some hired goons to go with me. They tank the bad guys as my mediocre dps slowly offs them. If my tank gets low I just heal him to full.

The only style that was challenging at all was a full on no armor wearing mage with no melee skills to speak of at all. Even that fellow got retard easy once I learned you can cast armor spells on yourself and summon some powerful tanky fellows. If you train up some stealth to go with it, and thieve those nice mage clothes from the Dark Brotherhood it gets to be just too easy as well.

It was a pretty game, but it just lost all the fun for me very quickly.   

The next day I'm feeling well rested, but depressed.  I go on a food binge and eat everything in the Inn.  Drink every bottle of ale, and wine I can find... I just don't care anymore. 
"We don't have anything else.  Please... You hea Fou Owahs!  Eat Vegtible! You Go Now!"
I stumble out the doors in a near food coma...

John Pinette reference - for the win!

George I am not sure how to say this, it is not meant as any thing but a compliment, this could go in the fiction section.  As read by someone who has never seen let alone played this game, I want to read more about the adventures of this character.

Tired of getting your but kicked? Play as an orc, go with a two handed weapon, heavy armor and learn to forge and enchant your own weapons. That way you can tailor all your gear for how you want it. (like making armor that increases bow skills.) Bow doesn't get really good until it slows down time when you aim.
If the game's too easy, turn the difficulty up.
There's a hidden chest in Dawstar that regenerates, btw.
I either play as a heavy Orc fighter or an argonian archer.
the DLC's are good. I like the crossbow.

"Foxes are good luck," I said, patting Billy on the neck. And then I noticed that just above the stream we were by, was a strange domed structure on either side of the stream, with a bridge between them.  It was beautifully built, and obviously ancient.  My curiosity got the best of me and I decided to check it out.   The steps up to the bridge were wide enough to ride so I coaxed Billy up and over the bridge.  On the side was this alter thing. 
I slide off Billy's back and walked up to it.  Dwarvish symbols were around the edge of this carved stone alter... and on top of it lay a golden helmet and sword.  They gleamed in the late afternoon sunlight.  The helmet was a bit heavier than my steel Imperial lid.  Looking around and seeing no one, I snagged that thing.  It was pretty cool, and actually fit me mellon pretty well. The sword though... WHOA!   As soon as I picked it up, the engravings on the blade glowed from within like the blade was red-hot from the inside out.  I put it back down and the glow faded instantly.  I picked it up again and the enchantment activated.
"Oh HELL YEAH!" 
Billy just looked at me.
"A magic sword!  I got a freaking magic sword!"
Billy just rolled his eyes, "sounds great."
"I got a freaking magic, enchanted, blade of awesome!"  I shouted.  Birds in the trees instantly took flight at my sudden and loud shouting.
I wonder what it does.   Huh... I can't read anything on the blade, but there is obviously something written there.  Dwarvish again.  Dwarvish bridge, alter, helmet, sword... Dwarves are freaking awesome!  I love Dwarves!
I hop back up onto Billy's back and we trot along a trail we discovered.  Soon we came to some steps carved into the hillside.  Oh hey, it's dwarvish stuff!   Fantastic!  I wonder if I can find some more armor.  I wonder if it would even fit me! 
We trot up to the steps and I could sense Billy's growing apprehension, so I slide off and dig out an apple from my pack. "Here, you stay here, be a good horse.  Promise me you'll stay here?"  I held out an Apple.   
Billy looked at the apple and back down the trail we came... I could tell he was thinking this over.  "If you promise me you'll stay, I'll give you this apple, and another one when I come back.  So that's two Apples for just staying."
Horses have no concept of numbers, but he did understand 'more than one' so his ears flicked with excitement and he nodded.  "Okay."
So I gave him the nice fat red apple and he was content to stay put.
I looked up the steps eager to find some cool dwarvish loot.   "Be careful!  I want my other apple!"  Billy said.  I grinned at him and pulled out my new magic sword.  He rolled his eyes again, so hard he rolled his head too.
I bound up the stairs two at a time, "Come on Treasure!"
Well, two bandits were up at the top of the stairs heard me and stood up.  "What do we have here?  Some fresh meat?" One of them said as he notched an arrow into his bowstring.
"I think we'll take whatever he's got."  Said the other as he drew his sword. "No need to be picky!"
I side stepped near a pillar as the two separated, and I kept the pillar between me and the archer.   "You just bit off more than you can chew."  I said.
"Oh really?"  The bandit with the blade said. 
Fire crackled from my left hand, with wisps of smoke curling from my fingers.  I've gotten better with my fire magics.  Then I raised the golden dwarvish sword.  "Come get some."  I taunted. 
The bandit came to get some.  As he lunged, his swing missed as I had stepped back just out of range and then stepped inside with a swing of my own.  I connected right under his sword arm with a solid hit, but one that wouldn't be lethal... normally.  But all the sudden the bandit was engulfed in flames.   He fell screaming and writhing as he burned to death, and I just looked at my sword.
"So that's what you do!"  I laughed.   "Oh man I love Dwarves!"
I forgot about the archer as he bounced an arrow shaft off my helmet.  Without even looking at him, I raised my left hand and sprayed fire all over him in a constant stream.  I didn't take my eyes off this wonderful sword. The power it had!   Amazing!
I stepped over the BBQ'd archer and walked up a few more steps and into a doorway.  This led through to a hall that opened up into an amazing courtyard.  There were steps that led down to a golden colored gate.   
"Sweet!  Dwarven treasures await!"  Without fear, I skipped down the steps and at the bottom was this lever sticking out.  Huh.  I wonder what this does.  Being curious and expecting treasures, I pulled the lever. 
At first, nothing happened.
And then I heard a strange sound.  Voop Voop Voop Voop VOOP  VOOP!  It was getting louder and coming from behind.  I turned just in time see a whirling blade coming right for my neck!  I jumped aside, just barely in time.  It was a wheel with blades on it the length of spears. Heavy blades.  When the wheel reached the bottom it folded up and I could see the mechanism pull back up the original position.  Huh?
I pulled the lever again and the wheel popped back out, blades unfolded and the contraption spun as it moved down the stairs. 
"A whirling head chopper machine?"  I said out loud.  "Who would make such a thing?"
Dwarves, obviously.  I answered myself.  But I didn't know why.  I turned to the door and opened it.
10 minutes later I came running back out through the door... "I hate dwarves!  I fluffing hate dwarves! fluff all dwarves!  I'm glad you a______s are extinct! You all suck!"
My helmet was dented all over, my new sword was chipped and dull, my armor was shredded, and all my magic power was used up on healing.
I stumbled back to Billy, who was, as promised, right there under the tree where I left him.  "Wow," he said.  "You look like hell.  You musta got your ass beat."
"I really hate dwarves."
Billy just looked at me.  "Uh huh... Cool story bro.  You got my apple?"

Don't make me write Skyrim fiction. I'll do it.

From George's posts it sounds like it is a fertile field.

The most fun if you are the sneaky type is the khajiit. You use no weapons and train up heavy armor until you get to the perk of adding your armor rating of your gloves to unarmed attacks. You can then do sneak attacks from behind, and a do a sweet one shot fatal German suplex attack.

It is helpful to just wear the heavy armor gloves later, and be sure and train up your illusion magic to keep the fights 1v1. You cast armor on yourself before the brawl begins so you are still quick on your feet. If you wear full heavy armor it slows your acceleration rate down too much to be an effective kung fu master.

One irk?  Reinstalling a game on an updated computer system.  I've been redownloading Saints Row 2 and DC Universe Online since Friday night. 

   Yup.  I'm a sick bastard.