After the conversation, go south. You'll get to the training area. Go left to do the first part of the training. Just run the course! If you start at 1, go left near the small lake for a strength potion. If you start at 2, it's near the end (the same course). Try to find the secret potion too! After that, you'll need to get a weapon somehow. Talk to the people in town and talk to the goblin in the bar. Promise him you won't tell anybody. Cut scene. Go south and left to the graveyard. You see a cracked rock. You'll need some bombs. Go to town and to the weapon store. Go to the basement, take the bombs and blow the rock. Now you got a weapon. Go downstairs for a strength potion. Back to the training area and kill all the monsters. Now some magic. Go to the house just north of the training area and talk to the shaman. Then ask her if she can learn you a spell. You'll need to find her secret realm. Go to the northeast corner of town and push the rock to the right. Go downstairs. Go up, kill the scorpions and take the scroll. Go back to the shaman and she'll learn you the spell. Now finish your training by finding the chest with the gold. Go back left. Cut scene.
You're now just north of town. Go up and save your game. Go left all the way and you'll see a fence. Go back right all the way and enter the house. Talk to the man and you can continue your to the west. You can also enter the cave north for a magic potion. You'll then have to fight three screen lock scorpions. Continue and save your game. Now go down first for a defense potion, then up for a magic potion and left for a strength potion. Go left on the screen with the savebot and fight the scorpions. Continue and you'll encounter some blood scorpions. Kill them. Continue north and enter the cave. Explore the cave to the west and kill more blood scorpions. Go west some more and you'll meet some men, they'll talk to you. Then go back outside, you'll now have to find a way to enter the other part of the cave. Go back to the screen with the savebot, go up twice and burn the cactus. Go downstairs, follow the path and you're in the other part of the cave. Go right, kill some more blood scorpions. Go up, save your game, go left for a potion and go up. A dying man will talk to you. Now go up again and kill the blood scorpions.
You're now just south of town. Go down, and left. You'll see a sign: 'Scorpion Palace'. Go right and enter the building. Go upstairs. You'll see a puzzle. You can't solve it now, even if you try all the possible combinations. Go back (either press Esc and confirm or just say no if asked to solve the puzzle). Do you see the arrow on the building? Go right, take the full heart and go downstairs. Go down for a defense potion. Go left and you'll see the orb combination you need to enter. Count the poles where the orbs are, go back upstairs and go to the puzzle. Enter the combination, you'll go upstairs. Now you'll have to fight more blood scorpions. After you killed all of them, the Queen of the Scorpions will come. Kill her too and you've finished Blood Scorpions!