I know I am fighting my shadow but I'm having problems. I can't seem to get him to use his sword because that's the weapon I want. I've killed the litch that floats around and has a staff, but when I activate the pillar in the middle of the pond the smoke or cloud seems to just freeze up. After I've killed my shadow, I can't seem to get the wood I need for the staff?? Any suggestions?

If your blade skill is higher than your blunt skill, you will get a blade. If it's the other way, you will get a blunt... so to speak. Try to use a non-enchanted blade against him. Reload a save? After activating the pillar, it should be all good.