The creation of intelligent magical weapons is not an exact science and there are occasional failures, as such think of causing a little more stress to your players by "rewarding" them with an insane magical weapon
Agrophobic, refuses to come out of the scabbard without a strength check to draw it.
Haemaphobic: afraid of blood, fight at a penalty against any blooded creatures but really good against undead, elementals etc
Schizophrenic, not just one mind in your sword, lets have half a dozen minds in there, all different and bound to cause confusion
the possibilities are endless
The devil's wind. Explains why people become crazy. They are caught up in this wind which steals their sanity which in turn feeds the wind. The wind is a leftover from when the air elementals banded together in a mass army at one point to attack the True Gods. The wind is leftover of their attack route and on the anniversary of the battle the wind sweeps through causing the madness.