Caladon sewers - off the 'Krag'. You sometimes get them off kites (actually, I think you can use the kite sword for god offerings - pre patch anyway) or bandits.
Here we go again. Dear Chlorox, bone-handled weapons can be found on the dead bodies of orcs in the plains between Tarant and Ashburry. Or, for the guarantied find, travel to Blackroot. Once you arrive find the choo choo train tracks and follow them untill you arrive at a tunnel. In the immediate vincinity of said tunnel you will find a winged blue krag berserker, (or something akin to that beast) slay the creature and claim your prize! Blue Valkyrie is about to die! Red Wizard needs food badly!
And you can always buy a Reaper's Axe, the one with a skull aray for a handle, from a magical smith or wise woman. Hunting or shopping, hmmmm....
*nod* I seemed to have noticed that the bone-handled weapons were ALOT more common after the patch. In fact, I remember post-patch, having found SO MANY bone-handled daggers I got sick of having to sell them, I ended up just leaving them on the corpses! (in late-game, money isn't an issue anymore) Volox: Post-patch, alot of kites have 'em.
They have always worked for me & I am patched. Last time I gave up bought the axe, the first Orc bandit I encountered had the fripping dagger.
Geeze! I have noticed strange things after the patch was installed. Such as, at the end of the game, when Kerghan dies, prepatch it played dwarvenmusic.mp3 throughtout the end of that movie, and the stargate movie, but now that I have the patch, it doesnt play it, why? What did the patch fix? It seems to have caused more problems then fixes.