Corrected entry: Galen tries to save the Princess from the dragon and is confronted by Tyrian. The two do battle and when their weapons collide there are "lightsaber" like effects. Galen's spear was augmented with magic so it is understandable that his weapon would be special. However, Tyrian's weapon also makes the special effects even when he uses his plain old sword against the ground.
Dragonslayer (1981)
1 corrected entry
Directed by: Matthew Robbins
Starring: Ralph Richardson, Peter MacNicol, Caitlin Clarke, John Hallam
Revealing mistake: At the beginning of the final battle, the dragon flies up toward the wizard and a sharp horizontal line breaks through the dragon, revealing the composited shot.
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Correction: Two possible answers to this: Either Tyrians sword also had been enhanced with magic at some point in his life, or some of the magic in Galens spear "jumped over" to Tyrian's sword during the fight.
Twotall