Upon entering Highmoon Village, you will notice another familiar stick from the rowboat blocking the fountain's spout. Many of the city's residents seem to be in some kind of trance and are completely unresponsive. Travel right to the strange prison and recover a page from your spellbook to discover why - someone has clearly made use of a Trance Potion to hinder your progress.
The only way to cure the Trance Potion is with a Skeptic Potion so you will need to collect the four ingredients: A Lucky Horseshoe, Rabbit Footprint, Sweet & Sour Sauce and Lizard Tears. Once combined, the potion is only partially complete and will have to be activated at the Altar of Doubt. To begin, visit the tavern above the travel store.
The door to the tavern is locked but it can be opened by repeating the old color combination you used from the Firefly Tree in Darkmoor Swamp. Within, search the open barrel to get some taffy. These unique pirates are holding a poetry night so you will be forced to recite a poem at the podium before the parrot lets you leave.
Back at Farmer Greenberry's house, return the empty blue bowl to the dragon then take it again to collect some lizard tears in a flask. You can now use the bowl to create Sweet & Sour Sauce by combining taffy with vinegar. Before you leave, enter the cellar again to grab two horseshoes. Make sure at least one is open upward as this a Lucky Horseshoe. Visit the mill with the other horseshoe to create a magnet from the sparks. At the rabbit statue to the right of the fishy prison, pick up some mud and press it to the statue's foot to create a Rabbit Footprint.
You now have all four ingredients to create the Skeptic Serum (Lucky Horseshoe, Rabbit Footprint, Sweet & Sour Sauce and Lizard Tears). Continue up the path and safely swing across the gorge by grabbing the rope with your trusty stick. Place the serum on the Altar of doubt to receive a completed Skeptic Potion.
Give the potion to the sheriff to gain access to the prison. You will find Marko "helping" you from within the prison cell and it turns out the key was thrown out the window. Go back outside and use your magnet on the glimmer in the water to retrieve it. The prison break is interrupted by the sheriff and you soon find yourself occupying the cell next to Marko. Using the magnet on the hanging key on the wall only gets it thrown out the window again. Going with Plan B, check the cell's bedding to unravel some thread to create a fishing rig with Marko's hook. Use the rig on the window to recover the key once again and finally make your getaway.
The storekeeper at the mustard shop is also under the effects of the Trance Potion so activate another Skeptic Potion to wake him from his stupor. He informs you that no ships travel to a dangerous place like Volcania and the mustard barge is the only one that comes close.
In the alley outside the tavern, you will see an octopus running a gambling game to win gold nuggets. Inside the tavern the pirates will be in the middle of a brawl. If you disturb the Scarecrow, one of the pirates will lose a gold tooth when struck. If you try to pick it up off the ground, he will reclaim it so use the Alchemist Magnet to turn it to lead first. With the tooth restored to gold, you are ready to win the rest of your fare to Mustard Island.
The gambling octopus will move the pea around too quickly to follow but you have a trick of your own to play. Place your lucky horseshoe on the ground and give him the gold tooth to begin playing. If you are unsure it's the right one, click the horseshoe on Zanthia and she will say she has a funny feeling about it. Once you have your three gold teeth, the storekeeper reminds you only gold coins will be accepted so take a quick trip back to the mill to press them into shape.
If you happened to lose your gold tooth by not using the lucky horseshoe, visit the tavern again to take advantage of another brawl between the pirates.
With your voucher in hand, visit the wharf below the prison to discover the captain is also in a trance. Give him another Skeptic Potion and you will be on your way. The Captain won't allow anyone near the wheel and undisturbed the ship will eventually reach Mustard Island. This dangerous island is filled with cannibals so you definitely don't want to be left behind here.
Since you don't actually want to travel to Mustard Island, a little sabotage will be necessary. Since the Captain is occupied looking out to sea, simply sneak your magnetized horseshoe into the coil of rope on the deck. With the navigation sent haywire, the ship will travel to Volcania where you will be thrown overboard for a quick swim to shore.
Summary
Get the stick from fountain
Recover a spellbook page outside the jail
Enter the tavern by using the color combination from Darkmoor Swamp
Grab taffy from the tavern's barrel
Read a poem at the podium to leave the tavern
Return the blue bowl to the dragon at farmer Greenberry's house then take it again to collect lizard tears in a flask
Combine the taffy and vinegar in the bowl to create sweet & sour sauce
Enter the cellar and grab two horseshoes, including one upward opened "lucky horseshoe"
Magnetize the other horseshoe at the mill
Use mud near the rabbit statue to create a footprint
Create Skeptic Serum in the cauldron with the Lucky Horseshoe, Rabbit Footprint, Sweet & Sour Sauce and Lizard Tears
Swing across the gorge using the stick
Activate the Skeptic Serum at the Altar of Doubt to create the Skeptic Potion
Give the potion to the sheriff at the jail
Get the key from the water using the magnet
Attempt to release Marko then use the magnet on the key hanging on the wall
Create a fishing rig from the threads of the cell's bedding, then use it on the window to recover the key again and escape
Activate more Skeptic Potions and give them to the travel clerk and ship captain
At the tavern, use the Alchemist Magnet on the knocked out tooth to grab it
Place a lucky horseshoe on the ground in the alley then use gold tooth to win more gold from the gambler
Press any gold teeth into coins at the mill and purchase a ticket to Mustard Island
Bring the ticket to the captain on the wharf to board the ship
Put the magnet into the coil of rope by the ship's wheel before you arrive