Unlimited Lives:
Go to the main menu. Hold R1 and press Circle, Square, Circle, Square, Triangle, Start. If done correctly you should here a voice say "What a Jerk!"

All Items:
Go to the main menu. Hold R1 and press X, X, Triangle, Circle, Circle, Start. If done correctly you should here a voice say "What a Jerk!"

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Hints

Special Hand Crafted Weapon:
On the east side of the Sands of Timelessness you will find 2 men. One has a fez and the other does not. Talk to the one without the fez. He should ask if you have seen his wife and daughter. If you have seen them say no anyway. He will ask if you need some help in you quest. Say no! Now he should give you his special hand crafted weapon.

 

Thanks to Revolution reader Sinister!