The swords name is "Lilarcor" and as previously mentioned can be found in the sewer maze.
The main reason for replying is to issue you a word of warning.... this bloody sword is always taunting you and trying to start a fight, not a problem I hear you say, as this game revolves around fighting. However if you have this sword equipped and haven't fought for a short while, it lunges out at the nearest character, either one of your group or a NPC. Highly frustrating if you are trying to initiate a conversation and get on the good side of someone.
After a while I was fed up of this and stopped using it. Maybe you will have better luck. It might have been the fact that I had Minsc using it and he has his own silly tendancy to go berserk when his special lady gets badly injured, and whacks the nearest person.
Good luck.
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