First of all, you will be in control of Sid. Go east and you will be greeted by Fast Tony. He asks if you would like to buy any reeds. Sid tells him he doesn't, and so he asks if you would like some Hints instead. As Sid asks him what he means, he tells him that if you press while in front of a Hint Rock (a rock with a question mark on it) when a ! appears over your character's head, you will get a hint.
Continue on and you will see two Ice Stalagmites. Press and Sid will melt one of them, and then you need to do the same for the other. Keep going east and Sid will spot some Volcanic Ground. He isn't brave enough to walk over it and so says that you should find another way around. Go North and he says that maybe he could climb the ladder-style rocks sticking out the side of the cliff. Go up to them and when the ! appears, press to grab onto them and to climb.