Dispel, Dat Spell, What's the Difference?

Check the list of items that the Dryad told you to bring to the Healer.  You'll need Fairy Dust, Flowers from Erana's Peace, Flying Water, Green Fur, and a Magic Acorn.  Hopefully you still have that acorn she gave you--if you don't, you can't get another one.

From the Dryad's corner, head east one screen, then north two screens, and then west two screens.  You'll be in the Meeps' Peep, a little corner of the valley where colored balls of fuzz pop their heads up every once in a while, like prarie dogs.  Talk to the Meeps and they'll all go underground to have a staff meeting about you.  Soon the Green Meep, the only one who speaks your language, will jump out of his hole.

You can ask about a few things (1), but the Meeps don't leave their holes very often, so they won't have much useful information.  All I've managed to get them to talk about is themselves.  They do, however, collect things, and Magic-Users will want to be sure to ask about a scroll that they might have.  The Green Meep will give it to you, and you'll learn the Detect Magic spell when you read it (M4).  This little guy also looks to be a good source of one of your Dispel ingredients, since he's green and furry.  Ask about green fur and he'll toss a hairball out of his hole.  Get the fur (5), and you'll have two of the five ingredients.

Next on the list (since I'm skipping around for the sake of convenience) is the Flying Water.  Head east four screens, then south two screens, and then as far east as you can go, and you'll reach a waterfall, where the melting snow from the mountains is coming down to meet the lake.  It's as close to flying as you get (after all, anything will fly if you throw it hard enough) so get some water (3) into one of your empty flasks.  Don't have a flask?  You must not have drunk either of those healing potions.  You can drink one now, even if you're at full health, to empty the flask, or run out into the forest and get into a fight with something so you don't waste the potion.  Or, if you want to save your potions (probably the best route), you can buy flasks from Kaspar at the Dry Goods store for 2 silver each.

You've probably noticed the door in the cliff above.  That's the 'ome of 'Enry the 'Ermit, a rather friendly (if somewhat asocial) guy.  Might as well pay him a visit now.  The question is, how do you get to the door?

• Fighters:  Once again, the old Throwing skill comes into play.  Throw rocks at the door until you hit it three times, and 'Enry will come out to investigate.  He'll show you the invisible ladder, which you can then climb.
• Magic-Users:  The Meeps' Detect Magic spell will show you the invisible ladder on the cliff.  Once you know it's there, you can easily climb it.
• Thieves:  As usual, you can borrow the Fighters' method of throwing rocks, or you can try to climb the cliff until you succeed.
  

Once you're at the top, politely knock (1) on the door.  'Enry will ask you to move away from it, and you should listen to him.  Inch over to the right until you're out of the door's path, and he'll come flying out.  (You can also knock from the safe place if you're worried about not getting out of the way in time).  The 'ermit will invite you inside. (5)

Sit at the table with 'Enry and ask about a few things (2).  He might not go out much, but he knows quite a bit of information (and loves to hear his own voice), especially about magic.  Magic-Users can ask about the scroll he has lying around, and he'll give it to you if you tell him you want it, adding Trigger to your repertoire (M4).  There isn't much else to do here, though you can play cribbage with him if you want to kill some time.  When you've had your fill of the talkative recluse, leave the cave and climb down the cliff.

Go one screen west and then south to visit the lake (1).  There isn't much to do here, but you might find a few easter eggs.  When you're done sightseeing, go north until you reach the Healer's house.  From there, go west to the centaur's farm, and then north as far as you can go.  Then it's east one screen and then north to Erana's Peace, which, in my opinion, has the best background music in the game.  Get some flowers for the potion, and then two more handfuls to sell to the Healer--she'll buy a total of three handfuls from you.  You can also eat fruit (2) from the tree, which will help you save on rations.

• Magic-Users might remember what Zara said about a spell here, and if you cast Open on the rock, it will slide away to reveal a scroll.  Get the scroll to learn the Calm spell (M4).  Three spells in one day--not bad.
  

Erana's Peace is also the best place to sleep in the game.  Not only is it free, the spells cast over the area will fully restore your HP, SP, and MP overnight.  But it's not time to sleep yet.

You're going to need to wait for nightfall in order to get the fairy dust, and the best way to wait is to work on your skills.  Fighters will want to either run around the forest finding monsters to fight (the Goblin Camp is great for this), or throw rocks around.   Magic-Users can practice most spells in the forest, but my favorite to do is to constantly cast Open on 'Enry's door, to confuse him.   Thieves can work on Pick Locks (pick your nose if your skill is over 40, which it should be by now), Throwing, Climbing, or just Sneak around--I would recommend Throwing:  buy ten or so daggers from Kaspar and take them to the target on the south wall of town (don't forget to pick them up again after throwing), or play Dag-Nab-It with the Chief.

When the sun has gone down, go to the screen that's one screen east and one north of the Dryad's corner, and you'll see a group of fairies dancing in a ring of mushrooms.  After listening to their chatter, dance (3) for them and when you're done they'll ask what you want.  You can ask about several things pertaining to the forest (1), and also be sure to ask about fairy dust.  You'll need an empty flask to store the dust in (8) or else it's wasted, so if you didn't pick one up from Kaspar, drink that last healing potion first, if you haven't already.  Also, get some mushrooms (3) (just make sure you don't go into the ring, or the Fairies will be mad) to sell to the Healer--like the flowers, she'll buy three handfuls.  Now you have all the ingredients for the Dispel potion, so go to sleep at either Erana's Peace, the Dryad's corner, or 'Enry's place (Thieves can climb the town wall to rest at the inn or the castle wall to sleep in the stables).  I recommend Erana's Peace, naturally, especially if your HP or MP are particularly low, or if you're a Magic-User (M5).  Be careful while traveling, though.  Tougher monsters come out at night, and you probably won't be able to beat them yet.

In the morning, go visit the Healer, and you'll tell her about your visit with the Dryad.  Give the magic acorn (5), the fairy dust (2), the water (2), the green fur (2), and the flowers (1) to her--and the mushrooms (1) while you're at it.  You can also renew your supply of potions while you're here (I try to have at least two of each handy) if you have the money for them.  When you're done, leave the house.  Go back in and the potion will be ready (7).  You now have the means to break Elsa's curse!

  Magic-Users:  Between your cash rewards for the potion components and working at the Stables, you should have enough money now to buy the Flame Dart spell from Zara at the Magic Shop (M2).  Practice this spell as much as possible, either in combat or in the forest.  You'll need it for the next quest.

* Note:  Fighters receive points the first time they kill a type of monster.  This point list is going to assume that you've killed at least one Goblin (F1) and Purple Saurus (F1) so far.  Both are pretty easy, but Brigands and harder might be out of your league just now.

This link is for tree-huggers.  This one is for a major quest.