Guess, Hell means Seth, the knight who sent you off to the healer escort quest - yep, you're too late for that blade.
Kiya

The God of Swords is in the Wastelands - after your Divine Ritual (NO return to Rivertown then) - in the middle of the desert - several houses around a rock, it's in a south house (cupboard).
Kiya

Link to Dragon's screenshot of the Wastelands, look here