Hi ccannon!!
Cursed items can sometimes be useful. Generally their curse will take hit points from you every now and then, or reduce some stat/skill. One of my characters was using a cursed staff for a very long time as it was the best weapon he could equip and he regenerated quickly enough to not worry about the hit losses the staff took.
Post the information on the sword and maybe we can figure out its "dark side"
Hmmm - red outline - check to see if the item needs to be repaired. Sounds like it is about to fall apart from damage to me.
Wyv