Yes, the film you talk about is from the Ring of Fire series with the 2 brother traveling around the far east. I have seen this and it is indeed very interesting stuff. I won't comment on "doctor" Chang here other than to say that he shows some interesting skills.
The imprints on the blade that you mention is called keris picit (there are various spellings) and i own a couple of blades with these indentations. I don't know if there is a proper name for the same marks made by the lips (ouchie
), but i am fairly sure that these are in fact legitimate (though i am also as sure that these marks have also been faked at times). The empu is said to imbue extra powers into the keris in this process.
Here is a link to a nice example which is extremely similar to one that i possess.
http://www.vikingsword.com/vb/showth...ht=keris+picit