Ok after saying ohh cool both dagger and sword are now showing up on my character awesome and figuring it out...obviously its suppose to normally but its bugged like a million things and not working properly so this is how you do to get it to work

first you need a single dagger and has to be equiped in your right hand seeing as you should anyhow for the instant assassinate animation

then you need 2 swords of the same kind make sure the dagger and both of the identical ( i.e. two orc swords) l swords are selected as favorites..and viola ur sword will always show up sheathed which is pretty cool even if you equip a bow the sword atleast is still there if you have the dagger in your right hand and use a spell in the left sword is still equiped....

Just to clarify when I say identical I mean just has to be the same type example...and how I figured this out....I had a Ebony sword which I sharpened and enchanted and a regular ebony sword as long as both swords are selected as a favorite and there the same it will show up....and if it does not show up right away you just have to unequip and reequip your chest armor piece....

how this Helps because I think I saw someone mention that they got it to happen but couldn't figure out how or to repeat it so there ya go....

Ohh on a side note what it seems to be and look like to be was and is apparently broken in the code is like lets say you have a bow a dagger and a sword selected as favorites was probly all supposed to show up on your toon but its broke like many things hope it will get fixed in the future but the devs seem to have far greater concerns with pc version apprenatly plague with incompatibility issues

xbox version buggy and problematic but the best working version...and apparently the ps3 version the one I have just pretty much breaks at some point..

but I've played like 60 hours worth on 2nd character and like 30 on my first before i rerolled....and the game only froze on me twice and rarely lags...am not sure...I think it performing better might have to do with me upgrading my hard drive from the standard 40gig 5400rpm to a 500gig 7200 rpm hard drive it reads and writes faster so its accessing the install faster i guess..idk but good luck everyone and enjoy the game if ur able..