Molida Island
Head to Molida Island in the southwestern corner of the southwestern map zone. You'll need to use your cannon to reach it. If you look at your map, you should see a gap in the wall of mountains that runs north to south here. There's no gap in the actual wall, though, but if you head to the gap you can blast your way through the weaker rocks there with the cannon itself.
When you land at Molida, you'll learn that it's a fishing island, and that one of its inhabitants has managed to penetrate the fog. He's not present at the moment, however. If you head to the easternmost house, though, and speak to the woman outside of it and the boy inside of it, you'll learn that the man has probably left behind some clues as to how to penetrate the fog.
Molida Cave
Head into the cave here and begin exploring. In order to enter the cave, you'll need to speak to the woman outside of it, who'll block your progress. To get past her, head into the house behind her and speak to her son. Repeat the process of talking to both of them a couple of times, and you'll eventually gain access to the cave. Note that if you didn't chase the ghost ship up to the north, you won't be able to enter the cave at all! Be sure to chase down the ship and get turned around in the fog before attempting to head into the cave.
You can destroy the first enemies in the cave easily enough, then boomerang the bats and hop to the northeast. Unfortunately, you'll come across a large, tough enemy here, who acts something like an overgrown Link: he uses a sword and shield, just like you, and it's tough to penetrate his guard. What's worked for us is to get him into the middle of the arena, between you and the water, and start to attack him by rapidly tapping away at him. He'll block all of your attacks, but will eventually hit the water's edge and stop. If you're lucky, you can keep attacking him and he'll slide off to the side a bit, meaning that you'll eventually be attacking him from the side and will be able to bypass his guard. A few hits like that and he'll die, opening the door. It sounds complicated, but if you just try to hit him repeatedly while his back is to the water, it should eventually work.
Pass through another chamber here, and you'll come out to a path with a couple of bomb plants. Find the crack in the wall and bust through to reach the wayfarer's hideway. You can read his journal here; apparently he has another hideaway that's located where the lines drawn between all of the Wayfarer's Stones intersect; you've probably seen a couple of them back in the village.
Nab the Shovel here and equip it by clicking on the Items button. If you dig on the slightly off-colored spot just below the chest that it's located in, you can find a 100-Rupee piece. There's another one of these back where you fought the large monster with the shield, as well.
Finding The Hideaway
Head out of the cave via the stairs to the north; there'll be a treasure chest with a random treasure in it, as well as a couple more Wayfarer's stones. Mark them on your map, then return to the village and mark the two that are there, as well.
Now, the point where all of the lines between these stones meet can be difficult to find, depending on your skill on drawing. Luckily, you can pretty easily find your way by heading to the southernmost Wayfarer's Stone (in the village, with the woman standing by it), then heading directly north from there. Across the stone path you'll spot a palm tree; use your shovel on the square directly south of it, between the tree and the path, and you'll find the hideaway.
Inside this second hideaway, you'll find a map on the wall that indicates the only way to bypass the northern fog bank. Be sure to etch it onto your map, as it'll be difficult to remember later. You'll also find a Treasure Map in a chest, and another journal. Make your way out of the cave, taking note of the strange door that you find, and return to Linebeck to shove off.
Spirit Island
You're pretty close to Spirit Island at this point, if you want to check it out. It's located to the south of Molida, in the middle of the three tiny islands on your map. It's not charted, but you will discover it if you get close enough to it.
There isn't much to see on Spirit Island at the moment, but you can get a Courage Gem in a chest here. If you explore the shrine, you'll find that you need to have 10 Gems to power up a spirit so that it can be equipped, and 20 to fully power it. You won't have anything near that amount of gems at the moment, but if you're about to max out your cash, you may want to consider buying a gem or something at a shop somewhere; they're expensive.
Traveler's Ship
You can also find the Traveler's Ship near Molida. This guy's ship has been overrun by monsters, but if you save him and talk to him, he'll give you some treasure and tell you that he's looking for a special book. Hmm…maybe you'll find it on your adventures!
