You need level 100 smithing.
To smith, go to Whiterun (or any other smithing place, but this is easiest). Fast travel there. Once there, look right, you should see a woman standing out. What I did was buy iron ingots, leather and leather stripes, then make iron daggers, and with the remaining few, make leather cowls (or helmets), can't remember what it was. Once done, sell them back to her, and go inside the smithing shop and buy all the same things from the guy in there. Come outside and make more daggers/cowls. Sell them. Then wait 48 hours so the shop restocks. You can also buy iron ores and make them into ingots using the smelter which is next to the workbench.
It cost me about 3k coins, but I got there in the end with 100 smithing. After that you need dragon scale and dragon bones to make dragon armour. Its easy once you get started. I'm having trouble understanding enchanting and alchemy at the moment.
Theres also a infinite gold glitch and a speech glitch for anyone that is interested, just youtube them, they'll be patched soon though I reckon.
As for me now, I might try to start getting my archery and sneak up. Might start robbing shops for the thieves guild.
Its an amazing game.