Remember, when doing Swords in WC3 icons, never try to put the whole object in the 64x64 frame. Chose a part you wish to put focus on and try to fit it in the icon. For example, you made a very nice handle - then you try to put focus on the handle, like so:
Or, maybe you want to show more of the blade, then you try to put a big part of the blade on focus(but not ALL of it, remember!), like so:
Also, the background seems a little strange to me at the moment, but it's probably just personal opinion.