Today I managed to get to the story quests that give me a legendary item. (Volume 2: Book 1)
After completing some quests I received some rusty dwarf tools which could be used to barter for a level 53 legendary weapon. I traveled to Bree and got a one handed sword for my guardian. Later on I was given the choice of another legendary weapon for a quest. So i chose a 2 handed axe for when I use overpower.
However now the quest is telling me to level the legendary item I received from the quest and I cannot use my one handed sword. I must level the 2 handed axe.
I think that the system is extremely confusing and did not tell me that I MUST level the legendary item I received from the quest and not the one I purchased from Bree. The fact that I received rusty dwarf tools BEFORE the quest where I receive a legendary item made me think I had to get one myself.
Am I now forced to level a weapon I will not use often or can I go back in the quest line to choose the 1 handed item.
Chapter 9 rewards your starter legendary weapon and is the one that you must level up. Chapter 14 awards a legendary class item (melee weapon for hunter/warden). Unless LOTRO Wiki is wrong, I don't see any that reward rusted dwarf tools.
Chapter 11 states "You must fight foes with the weapon you received from Sigthorn and Hundi until it reaches the tenth level of advancement". That's the one you got in chapter 9 and that you identified in chapter 10.
You can't even use the forge master for anything but chapter 10 until you finish chapter 14. After chapter 14, you can do what you want with LIs (level permitting) and there's no quest requirement to level any up.
So how did you do that? Also, reading the quest text, I don't think it's confusing.
No, you can't go back and get a different reward.
A spaceship from another star / They ask me where all the people are
I tell them I'm the only one / There was a war, but I must have won
Wordy00, you aren't necessarily wrong. Rusted dwarf tools are supposed to be exchanged for legendary items and you can do that whenever you want, but you can't use it until they are identified by a forge master.
You have to complete the legendary item quest before you can access the relic master and forge master. That weapon has to be equipped for you to level it and I'm pretty sure the quest tells you that you must level it to level 10. Once you complete that quest you can identify and equip (if able) or slot other legendary items, though the initial one must be equipped to earn xp.
I think the bit that has got you confused is going to Bree to trade. All the class traders were added to Bree recently (late last year?), before then you couldn't trade any of the rusty tools until you got into moria -and you couldn't get into moria without first leveling up the initial LI you got in the epic.
The quests haven't been updated to handle this, they all assume that the only LI you have access to is the one you got from an earlier quest in the epic chain.