Unfortunately, I am stuck.

The lady has contacted me, and I have retrieved the book. The next quest was to search for the sword.
I have looked all over the Graveyard and can't find it (the only place I have not looked is where Bhodi's lair is, since I am not quite that far with the main quest). I then asked if she would not mind searching for it for me, and paid her the 800 gold. I waited about a week (resting and just traveling, not really doing anything else) and went back to her. Her comments are "Do you have the sword yet?" and I have the same options as before.
Also, the guy (name starts with a D...can't think of it right now...) is standing right by her, but it says he has nothing to say to me, when I try to speak with him, and the lady will not say anything different, even with him there.
I'm playing with a female, Elven PC, and have Xan and Romantic Encounters installed.
Is there something I am not doing correctly, or am missing?
Thank you for your time!