Wherewith > With which

4 And double blows about him stoutly laid,

stoutly > boldly, bravely, resolutely

5 That glancing fire out of the iron played,

That > [So that]

6 As sparkles from the anvil use to fly,

use to > observe as a custom; hence: customarily, do

7 When heavy hammers on the wedge are swayed;

wedge > {Blacksmith's tool held in tongs and used on an anvil for cutting red-hot iron; also: ingot of gold or silver} swayed > swung

8 Therewith at last he forced him to untie