Go to the Haunted House in the village after finding the key and giving it to Moti.
Receive Adventurer's Log I.
Wanting to know if the story in the Adventurer's Log is true, you head off for Star Lake (Topple).
Find the dragon mentioned in the diary should appear on the menu.
Zone 1[edit]
Gleamdrop: Hidden by a plant.
The Gleamwell is in the southern portion of the map.
The Gleamdrop should be in a plant near the starting point, in the northern portion of the map.
Zone 2[edit]
Gleamdrop: Hidden by a plant.
The Gleamwell is in the northern portion of the map.
The Gleamdrop should be in a plant in the northern portion of the map, though the starting point is in the southern portion.
Zone 3[edit]
Gleamdrop: Defeat a certain group.
The Gleamwell is in the northwestern portion of the map.
The group that has the Gleamdrop is just to the north of the Gleamwell.
Zone 4[edit]
Gleamdrop: Hidden by a plant.
The Gleamwell is just to the west of the starting point.
The Gleamdrop should be hidden by a plant north of the Gleamwell, in the same general portion of the map as the starting point.
It may be worthwhile to head to the southern portion of the map for experience and items (and possibly a couple of chests), but it shouldn't be necessary to do so.
There's nothing more to see in Star Lake, and it appears that the Adventurer's Tale was just a story after all. Upon returning to the village, Tess may have found evidence to the contrary, though, and presents you with the Dragon's Scale.
If you take the Dragon Scale to the Bomb Brothers (Chat with them), they'll fuse it into a gem, Soul of the Dragon.