I can't believe nobody noticed this
If you look in the fmv sequences and in the battle sequences that have Seifer, you will find that the hyperion is not single edged but actually double edged. So therefore when Seifer was threatening President Deling he was actually threatening to slit his throat, not shoot him.
Also during the opening credits with the shot of Squall's gunblade in it's case. Since it is in black-and-white we cannot determine if the bullets are metal, all we know is that they are shiny, so they could be some sort of solidified energy. Giving more evidence to the energy theory.
It is my belief that the gunblade is powered by some sort of bullet containing compressed energy that when struck by the hammer is released. Therefore sending a shock of energy through the blade, this of course requires careful timing to do in the middle of a slash, which is why the art of the gunblade is said to be so difficult.
This would also explain why when Squall strikes his gunblade produces a big explosion, (due to the massive calibur of his bullets) while Seifer's only produces a small explosion (since it is of a lower calibur).
Could everyone at least agree on these...
Its obvious that we might never exactly agree on how the gunblade works, however I think we could at least accept these points
1) The gunblade is known as a gunblade for its gun mechanism, that means the ammunition clip/drum, the hammer and the firing chamber. along with the fact that some form of combustion takes place, but it fires NO projectiles (with the exception of prehaps a limit break).
2) The blade recieves some sort of force from the combustion (vibration, energy or otherwise) which increases the force and damage of the slash.
I also think we should keep in mind that magic does exist in this world, so perhaps that could offer some solution.