Adding Static Mesh to socket causes weird problem

You know, i was looking at the swords collision box and thought “man, thats a big collision box… Wonder if that has something to do with it…”
All makes sense enough to me.
I’m currently at work but when I get home I’ll try all your suggestions.

1)What would be the best option if i wanted the sword to inflict damage to an enemy pawn?

2)The collision box on the sword would also be needed if i didn’t want the static mesh going through walls, correct?

Thanks for the help/ideas everyone.