Using the tier 2 crafting table. I am trying to craft a rugged shortbow with gilded lumber. It will not let me use it. If I try to craft a longbow it will let me use the gilded lumber. Gilded lumber is currently the earliest source for adding ranged damage on wood.
As noted - when you check the available "Lumber" materials, any gilded lumber is not listed in the drop down list of available materials to use. To my knowledge in all other circumstances where lumber is required as a material for crafting this list will also include any gilded lumber you have available.