Unlock Sword In The Stone:

Beat a series of 5 bosses in the last bonus round (the Bloodstone one). You need all 11 Bloodstones to get into the extra area in that last bonus round. Once you defeat the last boss (Innoruuk), you'll "feel like a champion." Now you can go back and draw the sword from the stone. While the sword has a level minimum of 33, you don't have to be any particular level to draw it out.

dmg: ~220-270
+50 strength
100% health regeneration
lvl 33 to equip
weight: ~19.2