No, they're obsolete after Chateaux Irenicus' tutorial dungeon: if you haven't got a magic enhanced weapon in BG2, then you aren't going to get very far.

So when and where do I get magic enhanced weapons, are they the weapons that need to be indentifyed first?

You can find at least 3 inside Chateaux Irenicus. Once Imoen is captured, and you're outside, they're everywhere. Some need to be identified, some don't. A magically enhanced weapon is one that has an additional property, like +1, +2, fire damage etc. There is no shortage of them.

Yes, the majority of them need to be Identified first [I can think of only one exception in BG2 for a "found" weapon].

In BG1 magical weapons are much more difficult to find [as is appropriate given the level of the game] but they are certainly out there. As a rule of thumb, you can expect to find one or more from the tougher fights, especially against named adversaries. These may be on the corpses, i.e. they used the weapon against you, or in the treasure you can find after such a "bigger" battle - not infrequently in a locked and/or trapped container [chest, box, table, etc].

There are also a few magical weapons for sale from selected vendors in BG1 - but again this availability is significantly reduced compared to BG2. There you can find +3 or better weapons for sale quite routinely - such is *not* the case in BG1.

If you are worried about weapons breaking in BG1, here's a little tip for you. Weapons that are named, i.e. Hull's Long Sword, because they are quest components, do *not* break! So if you use a L Swd, you can forgo the few xp and GPs you get as a reward for returning Hull's sword, and just keep it, secure in the knowledge that it will never break. Offhand, I can think of a couple of daggers that this applies to as well. And, of course, missile weapons, like crossbows, bows and thrown weapons don't break either - one more reason to favour ranged weapons over melee... in BG1 anyway.

They don't tend to break very often, i think it is a 1% chance each hit, but you can always keep an extra weapon or two in the inventory (or weapon slots) just in case it happen mid-combat. Ranged attacks is very deadly in BG1, and since bows et al don't break, this is another reason to use them.

After a while you'll find plenty of magical weapons in BG1 too, but they're not found in every nook and cranny like in BG2.

If your weapon breaks use your fists until you find a new one. They aren't much worse than non-magical weapons.

Yep...
...and the 'ammo' is as unlimited as swinging a one-handed weapon!

:)

Now I am at the mines in Chapter 2 and I am fighting this guy at the 4th level who summons Kobolds and Skeletons so after I "defeated" him he yield and I accepted his surrender only to turn back and say ha ha I summon more Kobolds and Skeletons.

Do I kill anyway when he yielded even though I am Lawful Good?

Well I killed the fool, but I killed him with a critical hit before he yielded.

Anyway I meet this guy named Xan in the same room and he is the only one who can used this sword called the Moonblade.

Is he a great party member?

You can always give him a tryout if you have free space in your party.

I don't like him. He has an annoying personality, annoying voice, and because he's an Enchanter he cannot cast evocation spells like Magic Missile and Fireball.

Not really. He is not bad, but certainly not great. He has good intelligence score and can be useful if you like charming spells.
He is Encahnter, though and it means he can't learn any Invocation spell, including excellent ones like Magic Missile or Fireball. He is also very depressing and pessimistic guy, so you could take this in account as well.
I'd say, take him if you need mage, but you will get better deal with Dynaheir as good or Edwin as evil.

So why have the strongest Long Sword in the entire game (Moonblade) and have it only used by the worst party member :P

Also where do I find this Grey Wolf, it says he is in the Nashkel Mines but where exactly, because he has the second strongest long sword (Long Sword +2)

Because the game's not about recruiting the uberest NPCs... :P

Not in the mine. He shows up outside on the same map as the mine. Southwest corner. Talk to Prism (the artist) and Grey Wolf will eventually show up if you choose the right convo options with Prism.

The sword is there precisely for the reason to make him more appealing. And more unique. It is restricted to him so you can't just take the sword and dump him to get the sword.

Grey Wolf is outside the nines. In the area of mine entrance.


EDIT: OK, I give up. Stop ninjaing me! :-)