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After picking up Peter's lighter you are ready to explore the Grave Yard. Walk up the steps and continue until you see a tree. Try <ACTION> on the gate towards your right and you will find out it is locked. Turn around and enter the small building opposite from where you are standing (press <ACTION> near the door), now press <ACTION> near the stone opposite the door - Hellboy will say something like "Hey, that did something.". Exit and walk over to the other small building near the steps, again press the stone inside which will now unlock the gate.
After passing through the gate you will encounter some zombies while exploring the area. Use your <FIST> to defeat these and grab the [HEALTH] before walking up the steps to the next area.
After the conversation between Sara and Hellboy you can try <ACTION> on the door next to Peter - it is locked. Walk over to the grave yard where you will see a magical hourglass, press <ACTION> near it to discover it is a [SAVE] point (well you could have read that in the manual too).
NOTE: this might be a good moment to try the cheat in section 5.
E1 - Grave Yard
Use the entrance next to the [SAVE] point. You will be attacked by a giant bird. If you don't feel like fighting just <RUN> over to the end of the clearing and fetch the key, then <RUN> back and exit this area.
If you do kill the bird you will be greeted with another zombie when you enter the grave yard again, but at least you will get a [HEALTH] after killing it. You should probaby [SAVE] again.
Now, <USE> the key to unlock the door next to Peter, then open it with <ACTION>.