you can get some very nice upgrades for your sword. What you got to know that is that potions are very usefull in this game. In oblivon as example they are more optional. Here you will need them to upgrade everything on your caracter.
whats reaaly funny is that u can use like those kitchen stones to get a sharper sword lol if u used your sword to much.
But let me tell you one last advise. Play this game, because when you are in full action, you f*ckin dont care about your weapons. The action is really crazy, beating and jumping over 10 guys at the same time. I have never seen a free way to fight like this in any RPG.
In the Dwarven Blacksmith in Vizima you can buy 2 pieces of the meteoric ore, the first piece can be obtained by looking around the "cave" where the children are "outside Vizima."
With those 3 pieces and money, the blacksmith in Vizima will make you a "meteoric sword" which has very high stats vs. humans, somewhat better than the steel witcher's sword with which you start the game. The silver sword is used for monsters only.
The point of the game has nothing to do with this stuff though, the interactions and decisions that you make determines the course of events to follow. Lots of decisions are made with little or no information, you just have to decide based on what you are being told, how you are being told, and by whom you are being told.
More important than the gear is the alchemy portion - which does everything from mutate you, to making your weapons more effective (or even in some cases, the only way to be able to hit and defeat certain enemies in hard mode) to destroying critters outright. Its also quite fun.
If collecting cool armor and weapons is your thing, you will be disappointed in Witcher.