Welcome to the board, zipple!!
Are you TYPING the word in or choosing it from the KEYWORDS in the chat window. You have to click it, not type it.
Other possibility is that you are expecting the dragon to give you the sword, which he does not. He opens a door (usually behind you when you are talking to the dragon) and there in you will find the sword. When you pick it up, let the narrator complete his whole speech before doing anything else.
Hope that helps!
Wyv
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