I can't figure out what I am missing here, I have 2/3 parts of it done, anyone have any ides, both the 1 quest npc and the blue quest npc won't progress anything for me.
Don't talk to the number 1 npc, use the crafting thing that the npc is next to. You have to craft an item to complete the yellow quest. That will give you your 3/3 for the blue quest.