Train bodyguard candidates at the Gladiator Arena for Governor Volney
The Governor gives you a rapier - definitely no-good. Low stats and cannot even be sold...
Go to Gladiator Arena in the NW (see map).
To train the candidates, just 'kill' them.
Note: Beware of the Swamp Dragons (they do massive amounts of meelee damage - my Derth Mage at 91 AC lost half of his 160 hp in two blows (I attracted 2 green dragons on the way to the arena... saved my skin by luring them away to the sunken cemetery and dropping through the hole, and Recalling away...)