How to create a smooth surface.

"Can't open future version"

:(

I think that you can't get any better than this unless you move the boundaries of the sketch for the rib all the way to the edge of the main solid part on which you created the sketch. That way, the line that appears at the end of the fillet would be collinear with the edge of the sword. Since I can't open the file (I'm still with SW2010) I can suggest another method of creation, and that would mean drawing the profile of the sword at the handle and extrusion into length, and instead of using a parallelogram and editing it with a fillet, use a spline (one quarter of the profile and use mirror to get the left/right and then, again a mirror to get the other half, extrude to desired length and at the tip, do a drawing of the swords tip shape and cut-extrude... That leads to the small problem with the tip itself and the third approach is to create the main body of the blade, do a spline drawing at one end (@ handle) and draw a line around the whole blade to act as a path for a swept cut. That would probably be the best. I made a quick example of the spline based creation of the sword blade.

Here is the result of the third method, probably what you expected to get: swept cut around the solid body, swept profile created with spline.
You owe me a beer if you like the result of the method. ;)
I draw the path (sketch) along the body edge. By moving the path outside or giving it a different curved shape at the tip, various results can be achieved. It's a matter of having some patience and do some trial-error game... The method is important.

This is the model i used... I found it on google pictures..

i got it right Bobert... i took your advice of enlarging the split line area... but instead of using boundary surface, i used loft and it came out much smoother... Thanks you your advice though!!