The sword is on the first level of Iona's dungeon, which you will have access to after you have been to the castle. If you are past that, you can return through the grave in the graveyard.

Gathering the Holy Items and the Sacrifice


VERY BIG SPOILER ON DRAGON ARMOR SET - screenshot links are broken, but the descriptions should be sufficient (if not ask for more detail).


Silver Armour and Treasure Maps, or specifically the map showing the crystal locations


Welcome to the forum. wave


BTW there are separate forums for Divine Divinity and Beyond Divinity.