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: In the scene right before the dragon picks up Ulrich, you can see the dragon pass through Galen and Valerian. (01:41:45)
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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