He is near the first bridge don't go right to the teleporter to go up. Go left once you cross the bridge.
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The Smiths are spread throughout Wizard City. There is no "Wizard City Smith" if you are looking for the Commons Smith, he is in the Carnival near the wall behind the tents.
You can get the Crab Alley quest called "Trouble Underfoot" once you are level 12. Just speak to Sohomer Sunblade by using the teleporter in Triton Avenue next to Blad Raveneye.
he is by the lady by the house that is next to the bazaar
Follow the map all the way back to Heldreth Perch and the smith is standing near a statue
No, but there is Wizard 101 .