Lake
There is a cutscene where some creature is taking over your body. You wake up to realize you were having a nightmare. You then check in with Hunnigan; six hours have elapsed and it is now dark and raining outside. You are in a house at the far end of the lake.
Look around the house to find a box next to the stove, a Flash Grenade on a shelf, and Handgun Amo on the table. Save at the typewriter if you want. You'll find “Anonymous Letter” on the bed. It seems to be from someone trying to help you and tells you to go to the waterfall for the church key. The writer also knows about something going on in your body but is unable to do anything about it.
Before going on, get back on the dock. There are bass nearby if you want to refresh your health, you can even harpoon them from the boat if you don’t feel like shooting at them.
Jump into the boat, then follow the blue flames you can see in the distance. They mark a cave so go inside.
Cave
This is a cave that the Merchant has taken over for his own use. Before you start shopping, get the three barrels to the right of his stall, then shoot the lamp behind them a few times to get a Spinel. Now get another barrel to the left of the stall and push the crate there out of the way. Break the barrels behind it to complete a path to a ladder. Climb up to the roof of the Merchant's stall and start pushing the crates here, Link style, to find yet more barrels. One of these has the Green Gem which is an attachment for the Elegant Mask.
There is a hole here where you can drop down behind the Merchants counter. Get the Rifle Ammo here (he doesn't mind) and go back. Head back to the house where you woke up
Do some shopping at the front of the store it you want to, then get back on the boat to exit. Head back to where you woke up; there is a big torch burning near the dock. (If you go to the right instead then you'll end up where you were before fighting Del Lago. You can actually get new items here, but there are new enemies here as well.) Save at the house if you want, then go through the gate on the left..
Waterfall
Almost immediately there is a cutscene where a villager is walking toward you as normal when his head explodes and writhing tentacles come out of his neck. Some of the tentacles have sharp blades on them and will hurt you if they strike, so it's best to keep your distance from them. The creature at the base of the tentacles is the weak point; kill it and the villager dies as well. The creature's main weakness is light, so a Flash Grenade will kill it instantly.
So keep firing at the base of tentacles or toss a Flash Grenade to kill it, then collect you reward which, in this case, is a hefty 5000 PTAS. From now on, some of the villagers won’t die when you kill them but will sprout these tentacles instead.
The most common belief is that shooting a villager in the head will weaken it and make it more likely that the tentacles will pop out. So you should now go for the body or legs instead of the head. But there are those who maintain that whether the tentacles come out is determined beforehand, so it doesn't matter what you aim for.
Deal with another villager down the path, and continue. There is a place where you need to hop over gaps in a dam to cross the river. Follow the bank to get a barrel, then go back a bit and hop some stepping stones to cross the river again. Follow this side of the bank to the top of the waterfall. You may want to look around up here to get an idea of the layout below. Now climb down the rope.
Shoot the sparkling object to the right of the rope to get a Spinel. There is a villager in a tower nearby, he should be easy to defeat though. Climb up yourself to find Handgun Ammo and a barrel.
Check out the water-powered machinery here, you must solve a little puzzle to get across the river. First shoot the chain holding up the large crate above the water. The crate will fall in and create a stepping stone for you to reach a boardwalk in the center of the river.
Explore a bit here, there seems to be a cave behind the waterfall but the water is blocking the way. Shoot the sparkling object on the beam in front of the waterfall to get the Amber Ring. There is also a barrel at the top of a ladder on the left.
You need to do the crate trick two more times to reach the far bank. One is close to the water and the other is higher up so climb the ladder to get it.
Cross to the far side of the river and get the barrel at the end of the path. Then climb the ladder and operate the lever there. This diverts the flow of the waterfall.
Go back, as soon as you reach the center a crowd of villagers comes out of the cave and a few more come from across the first crate bridge. If you have a spare grenade then toss it at the main group and mop up any survivors. If things start to get crazy, you can always use the crate bridges to your advantage. Jump across them to slow the villagers down.
Once you've cleared the area, go into the cave and get the Round Insignia at the end. There are no enemies in here to worry about. The door behind it opens and you check in with Hunnigan. Continue through to a gate into the next area.
Underground Dock
Get the two barrels on the right, then shoot the torch next to the door to get a Spinel.
Now jump into the boat which automatically takes you to another dock. This area should look familiar as it's a Merchant's shop from the last chapter. There's boss battle coming up and you'll need a bit of preparation. First, save your game now since yuou may want to tweak your shopping choices for your next try. If you're low on healing items then buy First Aid Sprays if available. If you haven’t already then you may want to get the TMP as it may be very handy. Do any tune ups you've been putting off, except on your pistol since it won't be used much. If you're very low on ammo and health items then, as mentioned earlier, you can buy your way out of the upcoming battle by getting the Rocket Launcher.
The Holding Area
Remember the growling noise you heard earlier and you didn't need to worry about it? Well, it's time to worry.
Go up the stairs get the barrels at the top. (There were here in Part 1 but have respawned for Part 2.), Go through the doorway on the left and a cutscene will play.
Both the exit gates shut and about a dozen villagers start dragging something in, though apparently it doesn't want to come. It's the aptly named El Gigante, a giant that makes Mendez look like a doll, and when you finally see him he's really, really angry. He starts by killing all the villagers who dragged him in, then he turns his attention to you but you dodge his first attack.
The monster drops 15000 PTAS so be sure to collect it. Then look for other items left in the area, these are, depending on what you lost ot El Gigante or have already collected:
- Barrel x2 near east exit
- TMP Ammo, Spinel, Green Herb in west shack
- Handgun Ammo, 1000 PTAS in center shack
- Spinel, Shotgun Shells, 1000 PTAS in east shack
- Red Herb, Handgun Ammo in shelter on west side
- Yellow Herb on the wagon
- Barrel near west exit.
It’s a good idea to save back at the Merchant’s shop because you may not get another chance for a while.
Before going on to graveyard, you may want to go back to the swamp and the east side of the lake. This is purely optional but, though enemies have repopulated these areas, there are new items to be found in them as well.
Swamp (optional)
With the rain and dark, visibility will be an issue here so may help idea to adjust the brightness for the time being. If you enter from the holding area you will be greeted by a small group of villagers. You may want to just run past them to get some breathing room, then turn around to take them on. Remember that some of these may turn into the tentacle creatures now. Another villager is waiting a bit down the path. Get a barrel from the shack on the right.
There are more villager scattered around the swamp, but you should be able to snipe most of them before they see you. The tripwire mines don't respawn. Check the shack on the first boardwalk for two boxes and a barrel; the left box has a snake in it. There will be a villager waiting on the second boardwalk, and another one waiting in the shack near the exit. Get Handgun Ammo and a box in this shack.
Lake (optional)
This area has been taken over by parasite infected wolves. These are very dangerous and if one of the pounces on you, which is likely, you need to hsake them off. They tend to drop ammo refills so the battle may be worth your while.
Get a box in the shack on the right, and Handgun Ammo and a barrel in the cabin near the dock.
Cemetery
Follow the rickety ledge and get two boxes in the shack on the way. When you reach the path near the church, you may be able to spot parasite infected wolves. Snipe the one in front, and use the shotgun on the others as they come at you. Otherwise the cemetery is deserted.
Use the Round Insignia to unlock the church and go in. Note, once you've triggered the cutscene inside, the path to holding area, swamp and lake will be closed.
Church
Turn and go right, then look left for a small corridor that contains a few barrels to destroy. Head back to the front door, then head straight down the middle of the aisle. If you look around the front of the church, you should find a stash of cash for the taking. Once again, head back to the front door, but this time, head to the left. You'll find another small corridor, except with a ladder at the end. Head up the ladder.
Up in this area, walk forward. You should reach an opening off the balcony with a chandelier hanging. Walk toward the edge of the balcony, and you'll find that you can jump across on to the chandelier. Do that, and when the chandelier swings closer to the other side, jump across again.
Turn right, and you'll find a small panel that starts a puzzle when activated. You need to rotate the lights so that they match the design in the middle.
- Turn the RED spotlight 2 times.
- Turn the GREEN spotlight 3 times.
- Turn the BLUE spotlight 1 time.
- Choose COMBINE.
The spotlights will combine to form the symbol in the middle. The gates on the right will open up. Head in that direction. When you get there, you'll only find a single door, waiting to be opened. Open it and a cutscene will play...
Now Ashley joins you. You'll receive a manual on how to give commands to Ashley; take a look at it. Now look around the room, and you'll find quite a few items to take. Once you've grabbed them all, head out the door, go right, and go down the ladder. Ashley won't climb down, so once you reach the bottom, you'll need to catch her as she jumps down. Head toward the front door and a cutscene will play...