Reaver's Refuge Crafting.

Dragontouched Armor.

First off you need 50 Draconic Runes to buy Dragontouched Armor.

You must have completed Stealer of Souls to spend Draconic Runes.

• Dragontouched Plate Armor
  • Armor bonus: +15
  • Max Dex: +1
• Dragontouched Breastplate
  • Armor bonus: +12
  • Max Dex: +3
• Dragontouched Leather Armor
  • Armor bonus: +8
  • Max Dex: +7
• Dragontouched Docent
  • Armor bonus: +7 (+5 and +2 Reinforced Plating)
• Dragontouched Shroud (Robe)
  • Armor bonus: +6
• DragonTouched Outfit
  • Armor bonus: +6

Flag and Complete Stealer of Souls.

• You must collect three of the six unique gems found in the outdoor explorer area chests in the Orchard, Gianthold, Desert, Aussircaex's Vally, Soami Gardens and Mount Reysalon. These gems drop randomly in the chest found at each rare encounter.
• You must collect three unique essences from each of the flagging quests (Enter the Kobold, Monastery of the Scorpion, and Prey on the Hunter). These essences are a guaranteed drop at the end of each of these quests.
• You must turn in the gems and essences at the entrance to the Stealer of Souls explorer area. You only need to turn in the three gems one time per character. However, the three essences must be turned in EACH time you plan on running the Stealer of Souls.
• Once these are all turned in, you may access the Eerie Forest explorer area and travel to the quest entrance.
• You will be allowed to re-enter the explorer area as often as you like, but you may only run the quest after you have turned in three essences each time.
• If you fail during the first part of Stealer of Souls (prior to fighting Sorjak) you may restart the quest and re-enter.
• However, if you complete the first timed part of the quest, and then fail at fighting Sorjak, you will be required to turn in three essences again.
• Completing the timed portion of the quest provides an end reward of 50 draconic runes. Completing the Sorjak portion of the quest provides a Sovereign rune.

Extra info at the bottom of this post & at DDO Wiki.

Where to get Draconic Runes:

• 1-3 from named chests in Aussircaex's Vally, Soami Gardens and Mount Reysalon.
• 50 for your end reward from Stealer of souls.

Then talk to Vorace, he's across from the stormreaver that gives you fly. By the mail box.

Vorace Sells the Dragontouched armor and runes to upgrade your armor.

Draconic Runes needed for trade:

• 50 = 1 Dragontouched armor.
• 40 = 1 Eldritch Rune.
• 80 = 1 Tempest Rune.
• 120 = 1 Sovereign Rune.

The runes from Vorace are random.

Where to Get Upgrade Runes:

Dungeon

• 1 Eldritch Runes - Enter the Kobold.
• 1-2 Eldritch Runes - Monastery of the Scorpion.
• 1 Tempest Runes - Prey on the Hunter.
• 1 Sovereign Rune - Stealer of Souls(must kill Sor'jek).

Upgrades:

Eldritch Runes:

• 20% Striding
• 25% Striding
• Deathblock
• Feather Falling
• Fearsome
• Greater False Life
• Greater Resists(5 Runes)
• Healing amplification 10%
• Heavy Fort
• Imp False Life
• Lion Heart - Chance to Proc Remove Fear when attacked.
• Resistance +5 [+5 to all Saves]
• Stat Skills +3(6 Runes)

Tempest Runes:

• +1 Excep Stat(6 Runes)
• +6 Stat(6 Runes)
• Corrosive Salt Guard
• Crushing Wave Guard
• Efficient Metamagic - Empower Healing II - Reduce sp cost of healing spells by 2.
• Healing Amplification 20%
• Magma Surge Guard
• Protection +5
• Spell Pen VIII
• SR 22
• True Seeing
• Wiz VI [+150 sp]

Sovereign Runes:

• +3 Dodge - Doesnt stack with Chattering Ring.
• +4 Natural Armor
• Air Guard
• Crippling
• Destruct - Melee only attacks
• Devotion VIII
• Disintegration Guard
• Earthen Guard - Chance to Proc Stoneskin when attacked, caster level 7.
• Earthgrab Guard
• Enervation Guard
• Freezing Ice Guard
• Glacial Assault - Sup Glaciation VIII, 3 Piece Bonus.
• Greater Combustion VII
• Greater Elemental Energy [+20 HP] - Doesnt stack with tier 3 shroud hp.
• Greater Elemental Spell Power [+100 sp] - Doesnt stack with tier 3 shroud sp.
• Greater Potency VII
• Greater Spell Pen VIII
• Heightened Awareness 4 [+4 Insight AC]
• Imp Glaciation VIII
• Imp Resonance VIII
• Levik's Defender - +5 Insight AC, 30% Threat, 3 Piece bonus.
• Lorrik's Defender - Sup Devotion VIII, 3 Piece Bonus.
• Melodic Guard - Chance to proc dance when attacked.
• Potency VIII
• Radiance Guard
• Resonance VIII
• Smite - Smite on melee attacks.
• Sundering Ooze Guard
• Superior Combustion VII
• Tharne's Wrath - Feather Falling, 3 Piece Bonus.

Once you get these runes you go the the place where Vorace is and there will be 3 alters, Eldritch, Tempest and Sovereign, then put your Dragontouched armor and the Rune in the proper alter and hit forge. If you dont get what you want that first time just get another Rune and try again, you dont need new armor.

Runes are set once you get them, if you some how get 2 of the same rune they will stack in your inventory.

Extra Info:

You only have to turn Gems in once.
Gems are found in Aussircaex's Vally, Soami Gardens, Mount Reysalon, Desert, Giant Hold and Orchard, they drop out of named mobs treasure chest in those zones.

You have to turn in Essences every time you run Sor'jek.
Essences come from Enter the Kobold, Prey on the Hunter and Monastery of the Scorpion.

Theres no tiering with dragontouched pre-say, you can put a Sovereign or a tempest on before a eldritch rune.
You have to have completed Stealer of Souls to spend Draconic Runes. If runes Stack they are the same effect.
The runes you buy with draconic runes dont have a set order.

Take your armor off when you put a new rune on, other wise it wont show the change. You can still do it while wearing it, but you have to take your armor off then put it back on for it to show the change.