Talk to the boy by the shop at the entrance. Nejo's sort of an entertainment buff so (naturally) he doesn't know much about the Templars. He's a good swindler, though. After chatting it up with the local, walk to the eastern part of the area and exit through the doorway.
In this small area, go to the (d)rug dealer and talk to him. He seems a bit... odd. Open up your item and show him the matches. He'll take them and move one of his rugs to reveal a doorway. George will automatically enter and engage in conversation with the guy at the counter.
Apparently, this place is the Alamut Club. Try to open the door in the eastern corner of this room. It's the toilet room (huh?) and you can't go in. From here, quiz Ultar, the manager at the counter, about everything. It seems that the brush for the toilet was stolen, and everyone has to use their superior willpower until it is given back. But hey, you can always use Ultar's deluxe bucket!
If you flash him the picture of Khan, he will know exactly who he is. Apparently, Khan went through here yesterday asking for "Stobbie." It's later clarified as "Stobbart," which is George's last name. Uh-oh. He also states that Khan went to Bull's Head Hill. Well, if Khan went there then that must mean you have to do the same.
But first, we have to find Ultar's long lost toilet brush and get some money to pay for the ride to the Hill. Go back to the rug (not drug) dealer and back to the entrance of Marib. By the doorway you should see a man dressed in red. If you try to talk to him (whose name is Arto) George will find out the "horrific truth"; the man is basting things with the friggin' toilet brush. Ewwww!
Walk back to Nejo and talk about Arto. He'll help you if you give him the red ball. After agreeing, Nejo will say that if you are polite to Arto he will hand over the brush. After George memorizes the words, walk back over to Arto and choose to chant the words. Arto will run you off his area.
Trudge back to Nejo and really give it to him. However, you will find out that Nejo swiped Arto's brush while he was chasing you. Good man, that Nejo. Always smarter, quicker, and more quick-witted than the other bunch in this area. With the brush in hand, walk back to the Alamut Club.
After giving the brush to Ultar, he'll just walk off with no "thanks" or anything. However, he'll give you the keys to the restroom. It's time to go rest, apparently. Use the keys on the eastern door to enter the restroom. In here, you need to get two items.
The first is a towel. By the water faucet you'll find a box that is the towel dispenser. It seems that you need a key to open it, however. Good thing that Ultar threw all the keys at you. After using the key, take the towel out of the dispenser. The second item can be found in the stall. Try to use the chain over the toilet and George will yank it off.
Now that we have both of these items, exit to the entrance of Marib, which is the marketplace. In this area, go over to Nejo's stand and pet the black cat of one of the shelfs. The cat will jump up onto a statue. When you first have control of George ring the bell that is near Nejo on the stand. Nejo's father will walk outside and the cat will break the statue.
Pick up the remaining piece of the statue on the ground. We have to stretch this statue out fifty dollars worth, sadly. Combine the statue and greasepaint (the blue cloth you got in the sewers) together to make a cool looking statue. And that's all that counts when selling stuff, right?
With the statue talk to the fat guy that wanders around this area. He stands out pretty obviously from the background. When you find him, choose the statue options and he'll offer fifty bucks. George, obviously, will take it, though I think he could of gotten a little more out of it.
Cool, we have the money! With it, we can get to Bull's Head Hill in the safe environment of an air-conditioned taxi. Go back to the Alamut Club and tell Ultar the "good news." Agree to the payment and you'll automatically walk back to the entrance of Marib.
In this area, go north on the eastern side of the area to meet up with Ultar and his taxi. Sadly, the fan belt for the ta- err... truck has taken it upon itself to break. The really funny part, though, is when Ultar responds with the time being "One day, maybe six." Give the towel to Ultar (it's a conversation option) and you'll be off to Bull's Head Hill.
Bull's Head Hill
Hey, we're in the desert now! Walk over to the cliff and you should see a dead tree. George will break a branch of the tree; this should prove very useful. Combine the branch and the half towel (from Ultar) together to make a stick-towel! Whee!
Now it's time to put this new device to good use. Walk about four steps east from the tree and you'll hit a crack. Use the stick-towel to make an anchor and go down the ledge. In this small area, go north passed the ledge shadow to find a small hole in the wall. Try to use it and George will stick his hand inside.
Well, there is a metal ring of some sort, so put your hand in again. George will exclaim that it did something, but to what it did, I don't know. Maybe it opened the doorway in the ledge shadow to the right of the hole? Go inside this secret area and you'll meet Klausner.
He's not very proactive, is he? The door will slam behind you and, sadly, you'll be locked in. Good job, Georgie! Examine the statue next to Klausner but nothing will happen - not a single death trap. I guess Klausner just fell apart next to it.
Speaking of Klausner, search him for a key item. George has searched two dead \guys in this game already! With the lens in hand, look west of Klausner to find an inscription of some sort. Stupidly, George didn't bring a notebook or camera, so he has to try and memorize the inscription. Then the door will open and all hell will break loose.
Khan has you point-blank with a gun... so will Nico bungee jump from the sky and kill him? Sadly, she is settled in her cozy apartment, probably watching a sitcom of some kind. Anyway, it's time to answer Khan. First, I'd like to say that there are several ways to do this correctly, but I'll just list the one that I did.
First, tell him the truth by selecting the "Angel George" option. He'll believe you, oddly enough. In the second option, choose "Angel George" again. George will smooth talk his way out of this one, stating that the lens might break if he shoots you. For the third option, tell the truth again. Khan will accidentally slip something of Caesar.
...and also say that he'll have to kill you. Great. Choose to "die like a man," which is the second option. It obviously isn't the first with George ducking like a coward. Khan will admire you and ask to shake your hand. Select the second option, which is to shake his hand with the buzzer. George will stun Khan, punch him in the gut, and jump off the cliff. Suicidal.