Now that you're fully equipped and packing all the supplies you'll need, you're ready to take on the volcano. You're immediately presented with the choice to go left or right. Since this is a strategy guide and walk through, we're going to tell you all the details. To the west you'll find a dead end, but there are some goodies in chests so you might want to go get them first. You'll surely face numerous battles on your way there. To the east you will make your ascent. Climb up the cliff to reach the second level of the volcano and head west. You'll find some rocks in your way but you're strong so just push them out of the way. If you head north after getting around the rocks you'll find a small cave going into the center of the volcano, where you can pick up some more goodies.
If you've gone into the cave, find your way back out again (not hard) and move west to find the climbable "stairs" to the third level, with the bridge. Cross the bridge and there is another entrance to the inside of the volcano. Enter there and make you way west again, collecting any treasure you should find on the way.
Many of the enemies on the volcano are fire based and are weak against Ice spells, specifically Ice3. You'll need to develop and remember strategies for each encounter type, because some of the enemies can hit you hard and quick. One thing to make sure of is that you try and stun any Flamers you should come across because they can kill you with one blow. Some other tips are to make sure you have plenty of hit points left when killing the Efreet, and to use curing potions and spells on Zombies (e.g. Cure3, Revive, Holy Water, and Juice). Keep Tiggy's mana levels high because you'll use him a lot.
So you've made it west on the interior of the volcano's third level or plateau. Go up the stairs. A thin walkway to the east leads to some more chests. After collecting those, head up the stairs and then out into the open again. Move east across the face of the volcano. You're almost to the top. A small cave near the top has some more chests. Cure up and if you think you're in a good position to make it back down the volcano again (going down is a little easier than going up) save you game.
Head back west across the top of the volcano until you reach the center, where the opening is split but a thin walkway. There is a girl there, who looks innocent enough, but looks can be deceiving. Now it's time for a boss battle. The girl is practically immune to magic, so don't try any of that. Use melee attacks to deplete her hit points. The girl has several powerful attacks, possibly the most damaging being the Kiss of Death, with will flat out kill whoever it is cast upon. Keep everyone cured up well. It's also a good idea to try and cast a Quick spell on Tiggy, and you'll see why in a few minutes. Keep attacking and wait for the Girl to be overtaken.
When the Girl can't take anymore hits from your weapons, she will collapse, but she's not finished. You will witness a nice transformation of the Girl into a large red dragon, who is very powerful but has a weakness. Make sure you revive and cure anyone who is hit. After an attack, it is critical that you revive anyone who has fallen unconscious and cure up as much as possible. If Tiggy has a Quick status, you'll want to keep him alive if possible. The dragon's only weakness is Ice3 spells cast by Tiggy. Several hits and he is gone.
You may have thought the game was going to end now; that you would drop the staff into the volcano and the world would be saved. But the staff is clever and has a mind of its own. While you were battling the dragon girl, the staff put some distance between you and itself, and after the battle you will be shown a cut scene where the staff shoots up into the air and out of distance. It poofs on the moon and a ring of energy is emitted. Sadly (or not), the journey is not over. You must travel to the moon to retrieve the staff and try to destroy it again.
Now as mentioned before, you must climb back down the volcano. It's a little shorter if you don't go chest hunting in this direction. Gunnar is clever with gadgets, maybe he knows a way to get to the moon?