Firstly, only Lawful Good characters can use it (or is it restricted to paladins ony?)
The sword is found somewhere in the Windspear Hills. Remember Lord Firkraag who spoke ti you in the Copper Coronet regarding the monsters there? Take up his quest, follow through and you'll find it. Expect a big fight though, but the sword is a reward for that tough fight.
Shan't say any more w/o spoiling.
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