Thanks for the feedback everyone!
Sorry I haven't updated in a while, I've been working on the event editor and I'll probably be quite a while at that. There are a lot of config files and such to do with those; but I figure it'll be a good one to have out of the way and will help for testing and such (it's a pain to go through that opening sequence all the time just to test simple things).
Thanks for bringing the bug to my attention, I'll investigate it soon. I have a save file that I've been loading to test things and haven't noticed anything like swords absorbing, but I did notice a quirk with the guard captain in Kaipo trying to run away but somehow not being able to. Related perhaps?
In any case, this is very much a work in progress, and will probably result in strange things exploding from time to time, so always back up your rom.
The rom I'm using is v1.1 headered, so that's the one I'm mainly concerned about the behaviour in. If I can get everything working in that one I will consider expanding out to get it to be compatible with other versions.
Found the problem, fixed it, uploaded fixed version. Even though there is a menu option called "Event Editor" it is currently disabled since it's nowhere near ready.