@Dcfusion, the butterfly is to be found in one of the top right squares in world 2. Its in a bush standing on its own near the top left of the square. As for the sword, make sure you visited every cave fully. Good luck!
People reading the comments, ignore the pessimists. Yes, its a rip off of zelda. Yes, the controls are dodgy. Guess what, it's still a blast to play, and a great time waster. Isn't that kinda the point?
Badges just aren't working for me. kinda ticking me off by this point, i've beaten all the tracks and destroyed at the very LEAST 10 objects in a single bloody race.
 "Hero's Arms"){kind=icon}
 "Drift Runners"){kind=icon}
 "Pandemic 2"){kind=icon}