Taking on those Red Greasels was so disappointing

[Daggsy]

Try asking in the weapon shop about swords. It's not the only one, but it's a clue where to find one early on.

And it's a little disappointing, but you can't 'break' the greasels with a fire extingusher. But... that was kinda a stupid idea anyway.

[Trafalgar]

Heh, I skipped buying the dragon's tooth sword and bought Digital Ronin's sword instead with my Melk(TM) money (The 3000 credits I got for "joining" the Goats before they realized I had given them fake plans).

[Thehotdogman]

I killed Dark Templar in the voodoo shop and took his DTS. Subsequently, i broke the glass case, stole Ronin's sword and ran like heck to the streets. I don't even use the sword, but just for the sake of having it i've got it sitting in my inventory.

[WarV]

I have been using that 'other' sword that you get after you beat the game once sort of.