First, you start the game by paying it with the CAT. Then you use the arrow keys on the board to move the crane inside. When you have the crane positioned just right over your sword, press the center button. The catcher will descend, close, and hopefully catch your sword. [She mimes the actions of the catcher, just for good measure.] If it's a good catch, it will be brought over to the chute and you can claim it back.

Please be careful. Every time you lose, it's the same as losing at the doors.