Intermission (2-3)

After making it through Dungeon 2, there are a few things we need to do before we head to Dungeon 3. Go to screen E-7 and pay a visit to the shop there.
What to buy? The Magic Shield is tempting, but they are sold much cheaper elsewhere. You should never buy a Key in a shop, there're plenty in the Dungeons. So, pick up the Blue Candle for 60 Rupees.
Just left of that shop, you may have noticed these bushes blocking your path. A shot from the Blue Candle will get rid of them for you. You'll notice that you can only use the Blue Candle once per screen. It's not broken, that's just the way it is.
It's the forest! The Blue Moblins here are a good source of Bombs, but are also somewhat tough to beat. You can find a Medicine Shop if you burn this bush on screen C-6. You don't need to buy anything at this point though, it's a waste of Rupees.
In Screen B-7, you can burn this bush down. Enter the staircase that's revealed, and the old man offers you either a Heart Container or a Red Water of Life. PICK THE HEART CONTAINER. Seriously, you want the Heart Container.
Now, we can either go after the White Sword, or go to Dungeon 3. The White Sword is very nice, but it's much easier to get later in the game... Ah, hell, let's go ahead and get it now. B-6 is the infamous "Lost Woods" screen. If you don't know the way, you'll stay stuck here forever (or at least until you exit to the right). To make it through, you have to go Up, Left, Down Left in that order.
On the other side of the Lost Woods are some Lynels. DON'T FIGHT THEM. They're very powerful, and frankly, you're not. Just head up one screen.
This screen is the reason I'd seriously consider waiting to get the White Sword. The screen is constantly swarmed with Tornados that make you start at the bottom. The only chance you have to get through at this point is either the liberal use of savestates or a hell of a lot of luck.
If you make it past the Tornados, keep going north until you reach the cemetary. Defeat the Ghini here (you can touch tombstones to reveal more Ghinis that can only be defeated if you defeat the original Ghini... this is a useful way to raise Rupees and other items). After the Ghini(s) are defeated, push this tombstone out of your way.
The White Sword! Hurray! You need 5 Heart Containers to weild it, which shouldn't be a problem, since you already made it through two dungeons. The White Sword is just like the Wood Sword, only twice as powerful.
OK, time to head to Dungeon 3. Return to the woods and go to screen C-8 to find the dungeon's entrance.