[Justsomeguy]

quest has quite a few syntax errors, but using some of what you have, it may be something like:

sub EVENT_SAY {

	if($text=~/Hail/i) {
	quest::say("Greetings $name. Would you like me to craft some [armor] for you? ");
	}

	elsif($text=~/Armor/i) {
		if($qglobals{newquesta} == 2){
		##do something here
		}
		elsif($qglobals{newquesta} == 1){
		quest::say("Yes, $name!  I've told you what to do already!");
		}
		else{
		quest::say("Yes I have some very nice armor here for you, But you will have to do something for me first.");
		quest::setglobal("newquesta", 1, 5, "F");
		quest::setglobal("newquestb", 1, 5, "F");
		quest::setglobal("newquestc", 1, 5, "F");
		quest::setglobal("newquestd", 1, 5, "F");
		quest::setglobal("newqueste", 1, 5, "F");
		}
	}
}

And make sure npc's qglobal field is set to 1 as instructed.