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First off, open the chest and get... the Worn-Out Glove. This can only lift ONE rock per screen, much like the Blue Candle in the first The Legend of Zelda. After one use it's useless until you change screens again, so take care to pick and choose rocks. You can't just do as you please, yet...

Next go outside and one screen left. Ram the rock pile for a Zelda ALttP item Piece of Heart.png Piece of Heart. Then go down a screen and a screen to the left. Go down to the bottom right, lift a rock, and go down the steps to collect yet another Zelda ALttP item Piece of Heart.png Piece of Heart. Now go a screen to the right and lift one of the bottom-left stones. The leftmost one contains one of those rupee-spitting bug things. Anyway go a screen to the right and bomb the top-right corner. In here you'll find 150 rupees and a Zelda ALttP item Piece of Heart.png Piece of Heart. Go down a screen and ram the rock-pile to the bottom-left for 100 rupees.

From there, go west one screen, ram the rock-pile, and enter the dungeon.