Lagoon

Denegul

1) To/from Dwarf Desert
2) Armor Shop:
3) Village Elder - he will give you the Ancient Book and the Sky Staff
4) Thor - give him his pendant to receive the Powerful Mirror.
5) Restaurant
6) Mathias (after you find the Moon Stone in Dwarf Cave)
7) Old Dwarf - will give you the Freezing Pot if you show him the Moon Stone