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Located in .minecraft/config/BetterAnvil.cfg

legacyMode = Set to true to revert to original anvil algorithm
renamingRepairBonus = Bonus damage to a tool when renaming
mainRepairBonusPercent = The percentage of the tool to be repaired on top of a simple addition of the damages
repairCostPerItem = The cost per each item used to repair a tool
enchantCombineRepairCost = Cost to increase an enchantment by a level
enchantTransferRepairCost = Cost to transfer an enchantment to a tool
enchantCombineRepairBonus = Repair bonus added when increasing an enchantment by a level
enchantTransferRepairBonus = Repair bonus added when transfering an enchantment to a tool
copyEnchantToBookCostMultiplier = Cost muliplier per enchantment copied onto a book. This is multiplied by the enchantment level
copyEnchantToBookRepairBonus = Repair bonus added when copying an enchantment to a book
itemRepairAmount = Percentage each item will repair the tool by
breakChance = change this to increase or decrease the chance for the anvil to take damage/break when used. Default: 0.12
eg. 1.00 = 100% chance of taking damage (3 uses)
0.00 = 0% chance of taking damage (infinite uses)

Pre Version 3.0
anvilCostMultiplier = change this to increase or decrease the cost of the anvil. Default: 1
EG. set to 2 to double the cost of the anvil, set to 0.5 to half the anvil cost

freeRenaming = set to true to make it so that if you are only renaming it will cost no xp! Default: false

3.0.10 (1.6.*) Change log:
FIX: Bug that caused non-repairable items to be 'repaired' when renaming, e.g. tin strongbox (: 1) to creative strongbox (: 0)
FIX: Crash caused by empty arrays
Remove translation in config file to fix issues when language is changed
FIX: Enchantment limit being 1 to big
FIX: Enchanted book not being placed in anvil gui correctly
FIX: Output stack not showing if the player did not have enough levels

3.0.9 (1.6.*) Change log:
Fixed the cost and bonus of transfering enchantments not being scaled by level

3.0.8 (1.6.*) Change log:
Fixed max level enchantments not being useable, whoops!

3.0.7 (1.6.*) Change log:
Fixed crash with some mods that add enchantments

3.0.6 (1.6.*) Change log:
The cost and bonus of increasing the level of an enchantment is now scaled by level
Added legacyMode config option, set to true to revert to original anvil algorithm.

3.0.5 (1.6.*) Change log:
Fixed some of the config options not showing up
Fixed config options being strings rather than numbers, delete config for changes to show up
Fixed being unable to put enchantments onto a tool from a book
Fixed enchantments being left on the book as well as being put on the tool, now deletes from book

3.0.4 (1.6.*)
Actually fixed items being deleted.

3.0.3 (1.6.*)
Fixed items being deleted when they shouldn't
Fixed crash on startup

3.0.2 (1.6.*)
Fixed duplication bug
Fixed enchantments being lost under certain situations

3.0.1 (1.6.*)
Hopefully fixed the crash on opening the gui
Config options should now show up

3.0 (1.6.*)
This update adds many features and re-writes the entire anvil algorithm.
New Features:
When combining enchantments any enchantments that are incompatible with the tool or other enchantments on the existing tool are kept on the other tool
Enchanted books can now hold multiple enchantments and can be combined like usual (book returned)
Book + Enchanted Book copies the Enchanted Book
You can now move the first enchantment on a tool onto a book/enchanted book

New config options:
renamingRepairBonus = Bonus damage to a tool when renaming
mainRepairBonusPercent = The percentage of the tool to be repaired on top of a simple addition of the damages
repairCostPerItem = The cost per each item used to repair a tool
enchantCombineRepairCost = Cost to increase an enchantment by a level
enchantTransferRepairCost = Cost to transfer an enchantment to a tool
enchantCombineRepairBonus = Repair bonus added when increasing an enchantment by a level
enchantTransferRepairBonus = Repair bonus added when transfering an enchantment to a tool
copyEnchantToBookCostMultiplier = Cost muliplier per enchantment copied onto a book. This is multiplied by the enchantment level
copyEnchantToBookRepairBonus = Repair bonus added when copying an enchantment to a book
itemRepairAmount = Percentage each item will repair the tool by

2.1:
Updated to 1.5.2
Added config option: freeRenaming
2.0:
Updated to 1.5.1!
No longer edits class files!
Now a forge mods folder mod!
Now a universal download!
1.2.2:
Fixed config location on clients
1.2.1:
Fixed not working on servers
1.2:
Added a new config option that lets you set the chance for the anvil to take damage
1.1.1:
Fixes a crash
1.1:
Added config file!
Added config option to allow you to add a multiplier on the anvil cost
Can be used to reduce or increase the cost of the anvil
1.0.2:
Updated to 1.4.7
1.0.1:
Updated to 1.4.6
1.0:
Initial release!

3.0.9[1.6.*]: adf.ly - mediafire
3.0.8[1.6.*]: adf.ly - mediafire
3.0.7[1.6.*]: adf.ly - mediafire
3.0.6[1.6.*]: adf.ly - mediafire
3.0.5[1.6.*]: adf.ly - mediafire
3.0.4[1.6.*]: adf.ly - mediafire
3.0.3[1.6.*]: adf.ly - mediafire
3.0.2[1.6.*]: adf.ly - mediafire
3.0.1[1.6.*]: adf.ly - mediafire
3.0[1.6.*]: adf.ly - mediafire
2.1[1.5.*]: adf.ly - mediafire
2.0[1.5.*]: adf.ly - mediafire

Extremely old: mediafire

First, make sure Forge is installed. If you don't have a "Mods" button underneath "Multiplayer" on your main Minecraft menu, then Forge is not installed.

If Forge is installed, put the whole BetterAnvils.zip file you downloaded, into the mod folder.
On Windows 7, the folder is:
"%APPDATA%\.minecraft\mods"

Yours should be similar.
Also, the AppData folder is, by default, hidden. You either have to unhide it, manually type it into the address bar, or use the menu to find it. To use the menu, open Minecraft, click on "Options," then "Texture Packs." Next click on "Open Texture Packs Folder." This will open an explorer window at this location:
C:\Users\\AppData\Roaming\.minecraft\texturepacks
As you can see, that folder is very close to the Mods folder and Config folder, and getting to them this way may be easier for you.
Once you have the mod in the right place, you can verify it is correct by clicking on "Mods" from the main menu. It will show all mods Forge has found, and Better Anvils should be listed.

Download the mod
Open minecraft.jar in 7-zip or a similar program
Open the mod zip in 7-sip or a similar program as well
Drag all the files inside the mod zip into minecraft.jar
If you are installing on the client DELETE META-INF OR YOU WILL CRASH!!!
If on a server DO NOT DELETE META-INF!!
Close minecraft.jar and the mod zip
Enjoy!