Or u could take theeasy way out and once you get the moon blade use it and then go kill Emma, but that only if ur evil i think. But i did have a good member of my party because the sword can only be used by a good aligned creature.

Paladins always refuse a reward. Its in their nature to do so. So when i found that out, i put my barbarian or the thief up in front to handle the conversations. When it came to the moonblade area, i played that part twice cause i made the same mistake as you did and then i took my thief to get the 2k gold. Yup the blade isnt worth having later on, there are other blades which are better. I would say part with it for 2k and get something off a merchant later on.

the best, xp and item wise, i've heard is to just keep it and go on, you'll hear from emma again...

strange, my characters ( all 6 of them )tried to refuse the reward but no moonblade given to me.

Did the same - it was no problem for each to get the sword.
Are you sure you set all villagers free without any of them accidentally killed ??? And the orc boss is dead ???

If yes then this is relly strange ...

doesnt this sword kill trolls just lke fire or acid would cause isnt that y the troll takes it in the first place and does it get more powerful in the exttremly strange and extremly pointless HOF??

nobody was killed, my chaarcters was inch perfect in their rescue mission. but nobody was given the moonblade for refusing the reward.