JohnO, Lye waste is or was a part of Lye..I found this quote..
" Lye Waste, around Lye village, took its name from being an uncultivated, appendage to Lye, but became settled by a numerous body of men, who acquired a right of separate freehold on the passing of an Enclosure Act, and is now thickly built over."
I believe what you have mentioned about the forge in the kitchen was commonplace and nail making was also done at home.
I havent seen a Bugle in ages, but it once published an article on my Nans Great Uncle, Henry Wooldridge, who invented and manufactured the Frost Cog, I will try and find his photo as he was around in the Victorian Era.
The census image for my Great Grandfather in 1901 shows Chainmakers working "at home" and Im sure it carried on long after that.
I just wish(as is often the case) that I had asked my Nan more about her life in "The Lye" while she was still with us..The life she led in Lye prior to marrying cant have been given her too bad a start as she lived till she was 93, God Bless Her..x
I agree with Wendy, you are correct in what you say according to some things I have read.