When you're ready, open your inventory and use the "Cursed Snowglobe," (press start, got to items, then miscellaneous). This will transport you to inside the snowglobe. You'll notice the colors here are strange. This is not a glitch. In fact, you should pay special attention to the colors of your weapons (blue for your melee weapon, yellow for your ranged weapon).
Ahead you'll see a house with a blue door. It's locked, but you'll come back here in a bit. Move forward to the bridge, and you'll see three blue shadows attacking a villager. They can only be hurt with your melee attacks. Spells and ranged weapons will not hurt them. Although they take no damage from spells, you can still use time control to slow them down, and raise dead to draw their focus away from you. Defeat them with your melee weapon and speak to Tom, the villager. He will give you a Oast House Door Key. Just past him, next to the tree is a chest with an Infused Will Potion.
Head back to the house with the blue door (the Oast House), and go inside. You'll have to fight three blue shadows. Once you do, Old Ned will give you a "butterfly." It's really a melee target. Before you use it, head upstairs and you'll find a chest. Inside is a book, Wedding Bells and several condoms. Head back down and hit the target with your sword (or axe or hammer). It will move outside the house. Keep hitting it and it will lead you down the road. Just before the gate, you'll be attacked by another group of Blue Shadows.
Before you go through the gate, head to your right. There is a chest behind the house (it contains a Tart Bodice, Lover's Plume, Tart Skirt, Tart boots, and a mood ring). Head through the gate, along the path and into the village. You'll find a well (not the one under the tree, the one with a ladder). Go down the well.
Move forward along the tunnel. In an alcove on the left side you'll find the Murgo "Chicken" Model. In the next room you'll see three yellow shadows. They can only be hurt by your ranged weapon. After you've shot them, the villager will use a lever that will reveal a target. It will also unleash a group of blue shadows. Defeat them, then shoot the yellow target. It will lead you down a tunnel. When you get to the water, the target will lead to a dive spot. Head down there, and you'll end up in another tunnel. Follow the target to a large room filled with suits of armor. There are two doors here. One is the direction the target will go, the other leads to a second room. The target is in a doorway, between two suits of armor. As you pass between these suits, you'll be ambushed by two blue shadows. Defeat them, but instead of following the target, head into the other room.
In this second room you'll find a chest, which is locked (you can come back to it after you've finished this quest). There is also a book on the ground, but if you get near it, you'll be attacked by Blue Shadows. Defeat them and you can pick up the book "Archie Loggy's Diary."
Now, follow the target again. It will lead you out of the well and back to the village. The houses are now open, and if you need to recover health you can sleep in one of the beds. Head through the gate and down the path. You'll see a bridge over the path, and a trail on your left leading up to it. Go up this trail and cross the bridge. Move forward and you'll see some ruins to your right. In a chest there where you will find a Resurrection Phial.
Keep going and you'll come across some red shadows. These can only be hurt with spells. They also have the ability to teleport, and they tend to teleport away from you if you get too close. The best way to kill them is to set Inferno as your first spell in your spell selector. Use it as a targeted spell, and start spamming that attack. This will kill them in short order and at long range.
After the fight, speak to the school mistress. She will ask you to find the missing children. They are all located in the village near the beach. Their locations are:
On the opposite side of the beach you'll find the Murgo "Dancing" Model.
Return to the school. On the way you will cross over a bridge. Jump off the bridge and swim under it. Here you'll find a dive spot that will take you to a ledge overlooking the school. On this ledge is the Murgo "Dismissive" Model. Jump down to the schoolhouse and you'll get the red key. Inside the schoolhouse is Madam Ursula's Diary.
Head back to the area between the two villages and you'll find a red door. Go inside. Head down the first set of stairs and on your right is a wall you can break. Inside is a book "The Grumpy Rabbit" (part of the Grumpy Rabbit sidequest). Head down the next set of stairs and again look to your right. You'll find another wall you can break. Inside is the Murgo "Begging" Model.
Ahead you'll come to a room. When you try to leave you'll be attacked by a blue shadow and a red shadow. Since you know you'll have to fight before you go through the door, use "Raise Dead" to summon some helpers before you approach the door. Defeat the shadows and you can continue forward. When you try to leave the next room you'll be attacked by three blue shadows. The next room has three yellow shadows.
Ahead, you'll see three Shadow Cultists. They will order their minions to attack you. If you have time use Raise Dead or Time Control as they are coming to you. There are two yellow shadows on a ledge to your left, so take them out first because they are the easiest to kill. You'll also have to deal with some red and blue shadows. Kill the red ones next, because they do the most damage. Finally, take out the blue ones last.
When you've defeated them, shoot the yellow cultist, hit the blue cultist, and use a spell on the red cultist. They will not put up a fight. You will then be transported back to the town. You'll get 150 renown for completing this quest. You can now go back to the chests that were locked. The chest behind the schoolhouse has Well Red Dye. You can head back into the well, but be aware there are once again enemies here. The chest in the well has Jaunty Jaundice Dye. The chest in the Red Door Dungeon has the Cursed Grey Dye. The windmill near where you entered the snowglobe has blue dye.
