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I was just wondering if anybody knew the use for the broken sword found on Iliach (sp?. The Dwarf in the Irenicus dungeon with the nice armor and fairy nuts(lol). The description is just like: "A broken sword", no luck there. Any help would be great!

There's a post on this somewhere here....quick break down...nothing to do with it. It's still broken even if you pickpocket it.

You might get the same yourself. Just make a +3 weapon by spell Enchanted Weapon, and after 24h you'll have such broken one in your inventory. IMHO, this is the case.
L.

Weapons and stuff are somethimes destroyed by spells like LightningBolt or FireBall...

Yes, but Illyich always has a "broken weapon". This "broken weapon" is identical to an expired phantom weapon created by the Enchanted Weapon spell. Reason unknown. The "broken weapon" seems to be almost sure useless. I, personally, have never found any way to repair it or make some use of it.

the only use of the sword is that when u first play the game it makes sure u want to get the bag of holding zo u can get some room in your inventorie because that damm sword is taking a lot of room and u want to know where it is used for

but serieusly why should they make an item what is used for notthing and can't even be sold (like the wolfs pelt and the head)??

I don't think its for anything. In BGI, one might break their weapons from usage before doing the Nashkel Mines quest. It happened to me before, when Minsc broke his normal 2hand sowrd. It became broken and I threw it away. It probably doesn't have to do with anything. just my 2 gold pieces

On the topic of seemingly useless (though not just seemingly, perhaps) items, when you beat the people at the Slavers Compound (I think that was what it was called- with Olaf Rasmussen, Maferan, and crew), is there any point to the two Empty Potion Bottles?

Yes there is a point in empty potion bottles. You can fill them in the illihid dungeon, with brain verin.
About the sword it serves the same purpose as the chapel key (in the windspears), and the silver pantaloons - to annoy the player. About the arctic wolf pet - why do everyone consider it usless it can be sold for 150GP. At least that is the wolf pets i have found from summoned wolfs, and from the wolf in the CopperCorronet.

IMHO Iljitch (or what's the name) gets an Enchanted Weapon when you start (there is a mage here, you remember). Developers haven't count you'd sleep and so on, so you spend more than 24h to get to meet him. At this time it's out of use.
It's only a guess, of course. Though it is quite possible to come in 24h, i have never even tried.
L.

Who has an itch?LOL it might be part of the Golden, silver panaloons thing