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About Mist of Doom: you'll find it in the Catwalk Caverns. As long as you explore everything, I'm sure you'll come across it. (It's kind of funny that, even though I knew the Hand of Fate spell existed, it took me years to find out where it was, and that you discover it even before Mist of Doom...)

About the horseshoes: in all my years of playing this game, I've never found any use for these items. My guess is that they are references to the game "Kyrandia 2: Hand of Fate". There are more references to that game, like the Pseudobushia Hugiflora in the Northland Forest and the Westwood Stick (there was a stick that comes back to you many times in HoF).

About the rocks: the smooth and granite rock do a little more damage when you throw them, but nothing special.

But then again, every time I thought I knew just about everything about this game, it manages to make another surprise. Who knows...