Magister Gideon:
Weapons enhancement requires some magical souls. You must collect the souls of evil creatures and put them into the Soul Crystal I'm going to give you and take the crystal to a blacksmith. He will extract the power contained in the crystal and apply it to a weapon.
All blacksmiths everywhere know how to do this. They don't work for free, of course.
You can find the evil creatures whose souls can be collected in the northern part of Oren, the Forest of Mirrors, the Cave of Giants, the Devastated Castle, the upper floors of the Tower of Insolence, deep within the Lair of Antharas, Eva's Underwater Garden, and Devil's Isle etc. An enhanced weapon would be ideal for this mission.
"How do I collect the souls of evil creatures?"