Issue a fake (preferably) foam sword to every party-goer on arrival (or create your owns out of long balloons, this site has instructions for making a sword balloon: http://www.coolest-kid-birthday-parties.com/balloon-animal-instructions.html).
Have 2 or 3 adults blowing bubbles with bubble liquid and bubble wands in the yard. The kids puncture the bubbles with their swords rather than sword fighting with each other. Works great and keeps everyone happy until the last guest arrives!
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