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Is there a point to keeping the treasure (other than to combine it with other treasure)? I was thinking that items like "Dirty Pearl Necklace" might be the key to some puzzle, but I've just been carrying stuff like that the whole game without realizing they could be sold!
Anyways, just beat the village leader guy, he's cake. On his second form you can just climb the rear ladder to the second floor, go left and stand in the corner. He can't hit you there.
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