Mystic Ark/The Ark of Wood

The door to the giant's world
The fireplace hints at a flask and also at a hut with a lamp: this building is outside the temple. Therefore, leave the shrine, walk west and then North. Use the newfound Ark of Fire to light the lamp, therefore unlocking the door. Inside, use the Ark of Wisdom on the bookshelf to reveal secret door. The flask in the hidden room is the door to the next world.

Of all the enemies in this chapter, only one is worth being captured and turned into a figurine.

Town of Nanaka
The Ark is in the chest at the entrance, but the elder will give it to you only if you help the community. Talk to all the people in town to learn about the problem that affects them. Let Remul join your party (he does not fight), and only then the guard allows you to leave.

Dungeon: Cave of the Wind
This dungeon is located to the east of Nanaka. At the beginning of it, you will meet Remul's father; the two will leave at once. There are no monsters in this dungeon, the obstacle is the wind that stops and blows.

The dungeon is subdivided in two areas. The first part is like a winding corridor. Always press the directional button against the wind, otehrwise you might be pushed back by several sections at once.

The second part is a wide dome with "pillars"; these features prevent the wind from pushing you back to the entrance. You have to get to the top of the second area. First, walk to the top of the first pillar you can see, then walk to the pillar you see to the left, then walk up and right to the third pillar and open the first chest, containing a firecracker. Now, walk straight left to the next pillar, and from there up and left to an alcove in the wall, where you can get the second chest (it has a herb). The following part challenges you a bit more. From the chest alcove, walk up and right to the pillar, then up and left to another alcove, then up and right twice to two pillars. Now is the tricky part: if you try to reach the pillar up and right, you will be invariably pushed back; instead, walk straight to the right to an L-shaped pillar: from there you can get to the top pillar. Use the ark of wisdom on the stone tablet and read it.

On your way back, go to the right of the L-shaped pillar and open the third chest, containing a magic bottle.

Dungeon: Mount Silara
Get back to Nanaka and save your game, then tell the Elder what you saw in the cave of the wind. Night falls, but then at sunrise, the giant rises as well from the cave and walks on the village. The inn is destroyed: you can rest at the Elder's, but you cannot save your game anymore in Nanaka. The cave of wind was destroyed, too: it happened when the giant rose from underground. The only place you can go is west, to mount Silara/Shirara.

Mount Silara is a huge sand dune, and sand is flowing down in streams. There are sandfalls where you cannot climb to the top at all. The safe way to navigate this area is: on every solid platform, choose to climb the most faraway sandslide. This way you'll avoid the slippery spots and also collect the one chest. When you get to the top of the mountain, the giant arrives, too, and levels Mount Silara flat.

As a side note, the Air Needle enemies disappear with the mountain, but they were not worth being turned into figurines anyway.