Excalibur is always a sword worth getting.  The same information applies to all variations of Final Fantasy 4 (DS - GBA - SNES).  First of all, you need to get the Rat’s Tail.  Wondering what it is? Good question. Just joking. In order to get this item, you need to goto the Cave of Summons in the underground world.  You can find it in one of the treasure chest when you first enter the city (not where the shops are, but where there are just monsters and several chest).  Once you have that, goto the upper world and goto Silvera with your hovercraft.  

Land next to Silvera and get into yourcraft.  Go southeast from there (the youtube video is good to watch for this).  You will land next to a small cave and you go in there.  You will see a little man and he will trade you the rats tail for the Adamant Ore.  Now go back to the underworld and travel DIRECTLY south.  You will see a town named Tomra.  Look for a blacksmith that is east of the town.  Give him the Adamant ore and guess what? He makes Excalibur.  Just to piss you off, you have to wait nearly 20 minutes, so go enjoy a burger and coke while waiting for this.  After 20 minutes, you will receive the legendary sword - Excalibur.

YouTube Video - How To Get Excalibur 

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