Ahhhhh, she's everywhere. And also where do you find all of the items (clay, wood etc...)

Sounds like you're in chapter 1. The items she's looking for are in wizard's labs in each of the four city districts. The labs are all marked with a sun dial outside the door, and the key she gives is the only way to get inside. If you buy the maps of the districts, two of them (the Docks and Blacklake) will have a wizard lab marked on them. Just go inside, kill the minor guardian, and loot the item from the only highlighting area in there.

question - where is the 1 in the beggars nest?

It's near the entrance to the graveyard (north central area). You'll find a named corpse up there, and it's right next to it.