Ok I think I've found him and can reliably explain how to get to him. Enter Sorrow's Furnace without getting any quests. When you come to the first open area where you have to fight several groups, open the door on the right side and head that way. You'll come to another open area with several different groups to fight, you should be near an npc that gives the quest about killing 6 different bosses. Look around and there should be two bosses near that area and one should be Razorstone. Assuming boss placement is not random he'll be there. I did this three times in a row with henchmen and he was always in that spot, however, being with henchmen I didn't get his green item. I assume it is this axe since it bears his name:
This seems to be one of the most desired green items I've seen so far and I assume most people will want to find one. All I ask in return for this information is for someone to sell me one at a reasonable price when they become very common
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Go ahead and test this yourself. Hopefully the spawn is reliable, however it may just be a random boss there and I was only lucky to have it be razorstone 3 times in a row (so no flames if I'm wrong). Feedback on the validity of this spawn would be nice. Also if it is not clear how to get to this location in Sorrow's furnace, post here and I'll try to clear it up.
Let the farming begin.
