Shemsu, make models for the various sword types. Then someone can help you with the scripting.
I think the key is to have models that will each of the base-item types which are like a sword: short sword, long sword, two handed sword, bastard sword, scimitar, katana, rapier, 2 bladed sword, and… well why not a dagger as well.
I could make a script which executes on acquire, and swaps between the various blueprints available to a type of sword that is most appropriate for the PC who acquired it. This would ensure that the sword takes a form that is most effective for that particular PC. Alternatively… there could be a Unique onused property that enables a PC to say what form they want the sword to take. This later method might be the most efficient and user-friendly.