The Dink Network

I simply can't get past the start of the game. I have already the sword from the dead soldier, but when I go back to the cave and talk to Martridge, I still get the option "Where can I get a sword from". I simply can't figure out what to do next. I've got the thievery skills, and I've been arrested 3 times already. So what do I do now?

Meet Martridge at the cottage north of the mansion. When in doubt, the lady at the church (Selena) knows the gossip, and knows where you should be most of the time.