I think there is no need to search the roots for this sabre in Ottoman Empire, while there are silver marks and stamps, which (as sabertasche wrote) indicates Vienna. If so, I suppose this marks are: oval field divided on three with number (might be 13) and surrounded by numbers of date, ie. 1839, 1834 etc, with letter "A" which was assigned to Vienna. This one is one of the most common, but maybe there is different one on your sabre. Unfortunately I couldn't find "M&K" signature - is it stamped on silver?
Above all of this, we can find many sabres like this in Austro-Hungarian Empire during 19th c., in many shapes. Just take a look at some Croatian catalogues if you can, where you'll find many varieties of such weapons, though more often their hilts are made with mother of pearl-like material. They were also used in Poland, but then sabres were made in style and shapes of karabelas, because here was a good market for such patriotic weapons, used by polish noblemen to their national attires. We've got some of them in my museum too, and one of them is with such blue stones on the hilt as well.
As to the blade, it's beautiful but common blade made at the beginning of the 19th century, but could be a little later after 1810 aswell. Balde like this are usually associate with France but it seems to me they were produced in other countries as well (Russia?, Germany?). Sorry Mark, but knowing such decoration, it would be great luck if there were any signs on the flags, so I suppose this won't tell us anything

Regards!