good game, but can't proceed without leveling crafting :<

[Naberrie]

I will try that tomorrow. I still don't know why the NPC had the red mark on his head though.

If it's red it means you don't meet the requirements. That specific quest is not story related. It does not have a story icon. You are mistaken. It requires a level 19 in any DoH that is not CUL, as CUL does not meld materia. It probably doesn't taste very good.