Go east one screen and into the house. Pick up the potion and leave (there's really no point in talking to anybody in the town). Go to the east. This house serves no purpose unless you're hurt. If you are hurt, go in the house, go downstairs, and bust open a barrel for a small heart. Anyway, go one screen south and two screens west. In this house is a save machine if you need it. Go two more screens west and you'll find the bridge to Moorack's lair. Cross the bridge. Go west until you find the stairs in the ground, go down the stairs. It's quite difficult in here, I advise that you either use Ultimate Cheat or just run away from the enemies. Go north and pick up the potion. Go back down, go east and read the note. No reason :) Go two screens north and then west. Open the chest for a golden heart. Go east, south twice, east twice, and north. Kill the pillbugs and the wizard, then go north. Kill Moorack.
Walk along the eastern wall (more specifically, in the northeast corner) until you can go through a spot, then go east. Talk to the woman and the game is over!