Elysion/The Desert of Mystery

Make sure you return to the castle after you've visited the Lost Forest. Drop off the scrolls that you've picked up and exchange them for money. Speak with the king, especially if you have not obtained the useful Fairy Wings yet. Be sure to sell off any unneeded equipment at the Lyra Inn as well. When you are ready, start making your way up to the north end of Elysion Island. To the east of Hork Inn is the entrance to a tunnel that will lead you straight to the Desert of Mystery. When you arrive, you will be in the southern most region of the desert.

The Desert of Mystery has its own set of enemies, some of whom like to bounce up and down as they travel. These enemies are a lot stronger than those that you've faced so far, but if you've gained enough levels and wear the best equipment available, they shouldn't pose a significant threat. Be on the look out for an enemy that appears to be a three eyed floating head. These monsters can float right over mountains to get to you, so they are not easy to run from.

The desert is particular for the four different Inns that you can find. In addition, the desert hides a lot of secret treasure chests, so be sure to search around every corner (or cast the Inspect spell) in order to find every one. Your goal should be to try and locate every Inn. One of them is selling a very important item. Another inn has a very unusual item that is quite expensive, but worth purchasing if you can afford it. Along the way to each inn, you will discover other features of the desert.

Mineo Inn
The first of the four inns is closest to your starting location. It can be found in the south west corner of the desert. To reach it, follow the path that leads up and to the left from where you begin. Whenever you reach a branch where the path goes east and west, always choose west. When you can't go west any further, the path will branch north and south. Walk as far to the south as you can, and you will arrive at Mineo Inn. As a shop, it doesn't contain anything particularly important. A Battle Sword is very helpful if you don't mind parting with 800 gold, but it's possible to find one for free in the desert. Again, you are given the chance to buy a Speed Ring for 10,000 gold, but if you know where to look, you can obtain one for free very close by.