First off, I would like to rant about the perk tree. Daggers have no buff with the one-handed am I right?

Secondly, I obtained Nord ancient sword of cold, or a name similar (obtained when killing the undead in the casket where you get unrelenting force shout).. What are the possibilities if I smith it? For example, it looks quite rusty.. Will it be sharpened & look totally different?

Finally, how does enchanting work? When I enchant an item with a passive buff, where does the "passive buff" move to in my inventory? How can I transfer it to another weapon/armour?

Thanks for the help.