In all of my previous run throughs, the best steel sword you could get in chapter 1 was the jagged blade: base damage 19-25, 2 rune slots.
Now I just explored the caves during the quest Malena, and in the chest beside the dead dwarf, I found a diagram for a Zerrikanian saberra. Not the "poisonous" Zerrikanian saberra available in chapter 2, but an entirely different sword. This one isn't even listed in the Witcher Wiki or GameBanshee's Witcher 2 pages.
Is that a fluke or is it a new sword added by the latest update? Because with 28-35 base damage and THREE rune slots, it then becomes the best steel sword in chapter 1.
Can anyone satisfy my curiosity about this new development?
Thanks.

Can you craft it in Chapter 1?

If you got the diagram, you could; the components are readily available in Act I. The diagram does exist in the files, but was not thought to be anywhere in the game. It may have surfaced as random loot, or the OP may be running a mod. It's way out of balance for Act I.

Yes, it's easily craftable in Chapter 1. With the diagram, all you need are: 14 X iron ore,
2 X timber, 7 X Endrega saliva, and 100 orens.

It is very, very out of balance for Chapter 1. Just for fun, I had a second one crafted, I increased it's damage as much as I could with 3 Ysgith runes, as of yet, I have 1 level in the Violence talent +5% sword damage; on top of that, I swallowed a Rook potion and applied Falka's Blood oil and I stepped into a Circle of Strength. Total damage, 54-69.

OMG!

As you say, maybe it was random loot. I'm certainly not running a mod that would do such a thing. Unless it's the game that decided I needed all the help I can get, because, I admit it, I am not a very good gamer. Maybe the game monitors your performance and gives out better stuff if you suck too much. If that's the case, I say I'll take it! Because though I'm not very good at the game, I do think I'm entitled to enjoy playing it.

well id like to craft that jagged blade but i only have 2 of the teeth i need, any idea where i get more of the teeth for that sword?

Go out and whack some endregas. If you have already finished the Endrega Contract, they will be scarcer; try the forest close to the west gate.

As cjrgreen suggested, go whack endregas. Every day there's a certain number of them that will spawn in certain places in the forest. Or you can buy some from Anezka. She's the only person who sells endrega teeth and like all vendors she'll restock every day, but not a lot. The endrega whacking solution might be faster in the end, and at 64 orens a shot, it 's obviously cheaper to hunt for them.

Going on hunts is also a good way to build up experience points, though if you're level 11 or more, you don't get any XP for endregas anymore.

Good luck.