Where is it? I thought it was in Bodhi's lair, but it's not there.

It's in here coffin the second time you fight her, after the underdark.

Ohhh... So I'll have to come back in CHapter6.

I like its name but I wish it had some kind of special abilities.

Some good special abilities would be:

10% chance you cut the victims throat in a backstab.

cast invisibility 2 times a day.

Hey, it's +4, good enough for me!

Having the Silver Sword's ability would be cool, but a little too powerful maybe.

No, the 10% chance of cutting someones throat would only work in backstabbing, while the silver sword has a 25% chance which can happen anytime in melee, not just backstabbing.

I always thought that the Vorpal Sword and Sarevok were a good combo :D.