The Sword: You have to get all three pieces of the sword (A hilt and two Blade Pieces which are found on the circle of Damnation and the Circle of Pain). Then take it to the Smith in the Fortress which is ne ne of the Central Courtyard, He will give you a Blackend Shortsword which you take to Drogo who is sw sw w n e from Pestalent Way. You get 350 gold for that.

Update: Blackened shortword has Damage: 88 To-hit: 267 Speed: 149, and last for quite a while, so newbies can use it for bashing as well.

Jirken Quest: Go to jirken who is se se se s s e from Pestalent way. Greet him then Agree Jirken. He will afflict you with an affliction. Make sure you have Goldenseal and Immunity. He gives you 350 gold for this.

Gack Quest: Get the Shackles from gack and go to either Mog or Dun fortress and find Adolesocent Mhuns or Orcs and push them. They will become shackeled up and you can take them back to gack for money. 250 gold per slave.