Ahoy Craft,
Welcome to the site! <img src="style_emoticons/<#EMO_DIR#>/par-ty.gif" style="vertical-align:middle" emoid="
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First off, let us know if you are playing the unmodded version of the game, or are using one of the various Builds. This will help us to answer your question because different things can occur depending on which version you are using, and some of us are not familiar with what is going on in the more recent updates. (Me) <img src="style_emoticons/<#EMO_DIR#>/whistling.gif" style="vertical-align:middle" emoid="
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That being said, it sounds like you are using an unmodded version of the game and there you have a couple of dungeon locations that have swords in them.
In the water dungeon in Oxbay town there is a sword, the Dragon's Tounge Blade, or something like that, and if you are in the lower portion of the dungeon, which you should be if you came in by way of the water, this sword is located in the area at the end of the long hallway you came in by, just before you go up the stairs. After you have cleared the skeletons out of this area walk around the central support section in the room, walk close to the inner wall, and an icon that looks like a hand should eventually appear inthe top left portion of the screen. If you press enter when this appears it should bring up a screen that shows the contents of the chest you have located. There isn't really a chest, but the area of the wall looks a little bit like there is a hole there, so that must be where the sword is supposed to be.
The gates that you are talking about are just there for decorative effect, you can't open them.
In the Oxbay dungeon outside of the town there is an even better blade hidden away, and I only hesitate telling you its location because looking for it, in my book, is half the fun. There are other swords in other dungeons and caves on most of the other islands, (not the French or Spanish for some reason) and the occasional pistol hidden here and there.
Urgh, I was just trying a search because I seem to recall someone giving really good directions for the Falchion's location, but I can't find it. I basically recall following the tunnel going right of the torches and ladder as I face them, until I get to the lower level and then turning right and following the tunnel all the way until it doglegs to the left, being ambushed by two skellies on the way, and finding it stuck in a support beam. Hope this helps! <img src="style_emoticons/<#EMO_DIR#>/par-ty.gif" style="vertical-align:middle" emoid="
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