Oh, I remember this one. It looks like you decided to skip the childhood this time around as well as maintain more of a mystery towards Lucius' background. That's fine really, and the timeskip is done well. If I had to criticsize, I'd say I miss the best Altmer ever.
Moving on to the mark 2 knight. I like the idea of an initiation rite based around obtaining swords. It is a good source of adventurers while also explaining why random people go to random adventurers with all their trouble. (Knightly oaths and all that)
It also shows character. What do you think of the knight that just grabs the first crummy sword he can get and calls it a day? What is the difference between the knight that buys his in a store with money he made through odd jobs, and one who gets his by raiding a tomb? (I think I actually prefer the guy that buys his though. Tombrobbing is a tad too close to burglary really.)
It is also a way to learn ones limits. They get three years. That's enough time to go on a wild chase for the best sword ever (like Goldbrand), learn that you're aiming too high or that the means of obtaining that sword would violate your vows, then settle for something you can honourably obtain.