In the next cutscene you are surprised to see that you're on a bed and there is a Golden Labrador looking at you. The labrador is Amalia, and she tells you that she's glad you didn't hit any of the rocks surrounding the island, because if you'd have hit one of them, you wouldn't be waking up right now! It was Mr. Birdy who told her about you. She asks you why you are so desperate to get to The Dog Island. After you explain the situation, Amalia says she'll take you to see Dr. Potan.
Go to Dr. Potan
Amalia will go across the bridge to the middle of the village, and you will see which building is Dr. Potan's clinic. All you need to do is go the way Amalia went and when you get near the clinic door (Amalia's standing outside) you will automatically go inside. You will see the Beagle, Dr. Potan, standing behind his desk.
Dr. Potan asks Amalia who she has brought with her today, and she tells him about you. Dr. Potan asks why you've come to see him and you explain the situation again. Apparently this illness is very unusual, but Dr. Potan has treated a similar illness in the past, although he doesn't know if this is exactly the same. Amalia begs him to help you, and he says that he will, but he needs a few days to work out what things he needs to use to cure your brother or sister.
Once you are back outside, Amalia says that because you'll be staying here for a few days, they need to find you a house. She knows that Noble, a Yorkshire Terrier (and Chairman of Pupsville) has a house which he isn't using. Amalia then takes you to see Noble.
Noble greets you both and agrees to let you stay in the house, but first he asks a question.
"Do you believe in ghosts?"
You become confused, and Noble says that some dogs have seen strange happenings, or heard something moving in an empty room. Some say that the house is haunted, and others even go as far as to say that Noble's family is cursed! He tells you that he can use the house if he can find out what has been going on.
Once outside, go west and you'll see Amalia standing at the front door of your house. Just go near her to go inside, and once you are in, she'll say, "It's not like I believe in ghosts or anything, but I've just remembered something that I... uh... really have to do." Then she'll leave you in the house, and you'll learn a strange new smell. Follow it to the fireplace, and then a very weird looking thing will come out.
The thing is surprised that you can see him, and asks if you are one of those Sniff Masters he has heard about. Once again you get confused, and the thing says that you just sniffed out a hiding Anc, which is something no ordinary dog can do. The Anc introduces himself as Petasi. He will tell you that ghosts and Ancs are completely different things. Ghosts are made up, but Ancs have been around at least as long as dogs, although dogs have forgotten they exist. Then he says that you should let Noble know that it wasn't a ghost in the house.
Go back to Noble's house and talk to him, and he'll be surprised that it was an Anc. He will then say that you can use the house for as long as you want. After that, go back outside the house.
Plant an Anc Tree
Petasi will say that there is something he needs to do, and he wants you to help him find a large grassy area. He remembers that there was an area like that somewhere in the middle of the town. All you need to do is go to the middle of the village where there is a round grassy area, and you will help Petasi plant the Anc tree. Petasi tells you that every time someone says "Thank you" to its owner, it takes the appreciation and uses it as energy to grow. When it has grown really big, Petasi will be able to go back to the Land of Ancs.
He wonders if Dr. Potan is ready yet, and says you and he should go and find out.
Dr. Potan will say that he needs you to find some herbs, but to find them you must know how to sniff. However, you sniff differently from other dogs, because you never had proper training. Although he is a dog, Dr. Potan doesn't really know how to sniff, so he tells you that you need to go out of Pupsville to find someone who can teach you how to sniff. While you are talking, a certain Boston Terrier is listening in on your conversation from the door to the clinic.
Ring Fragment 1
Once outside again, head to the southwest corner of town and you'll see a path going through an archway. That's the way to the Green Meadows. Go through there, and Yi Lu, the Boston Terrier, will be standing there with a question mark over his head. Talk to him and he will sniff you, tell you your name, and basically repeat everything he overheard when you were talking to Dr. Potan. You are amazed at his perception, and Yi Lu tells you that he's full of surprises. He will teach you how to sniff, and asks you to find Ring Fragment 1, which is hidden in this level. You will memorize the smell of Ring Fragment 1, and then you need to go and find it. You will be able to find it somewhere on the left side of the path not far along. When you have it, take it back to Yi Lu.
Ring Fragment 4
He will tell you that dogs are not the only animals on this island, and some animals are dangerous. He will then tell you about the enemy's status. He will also show you how to knock out an enemy by barking or howling with the button. He will then tell you to get Ring Fragment 4, which is in the possession of a snake on the east side of the level. The snake which has the Ring Fragment is the one closest to Yi Lu on the East side of the area. Sneak up behind it and howl or bark. The snake will drop the Ring Fragment, and you will automatically get it. Take it back to Yi Lu, and he will thank you. He thinks he lost it for good thanks to that snake and says, "Oh, never mind."
If you talk to him again, he will say that he can smell a dog that needs help from the direction of Potan's Clinic.