When you left-click on Lilalcor in your inventory, you see the story about the sword. There are a couple of buttons (like abilities, from eg an axe: you can choose to use it melee or thrown if you click on the button to the left of the screen). Lilalcor has a button on the right saying something like converse/convert and when you click on it your character starts behaving strange. I once used it on Minsc in De'Arnise Keep and he immediately said something like 'what are we doing here let's just kill those peasants.' I don't know what happens exactly but it has fun dialogues (at least the 1st one cause I reloaded and didn't touch that button again till now)
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