I have found iron and dogged it up, but it just gives me the block with stone in it, unlike when I dig up a coal block it immediately gives me the coal. Iron just hands me the hole darn thing! And yes, I've been using a stone pickax.
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Dude it easy just go to the furnace... Put the rock containing iron in it on the top box, and some wood to use as fuel in the bottom box and then wait..... It should be done shortly
Go to furnace put iron in the top box then put wood or coal or someting else to burn in the bottom box it is the same for gold
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