"It's time you learned more about the secrets hiding beneath Avalon. You should speak with my old friend, Nichol."
This quest marks the end of Chapter 1. Use your compass to guide you through the forest to Nichol's house. If you don't wish to use your compass, simply use the path in Lower Avalon that leads to the Crypt, pass to the right of the Crypt, pass the orange and green hut, and continue on until you see Nichol's house. Since the house is floating, you will have to use your rocket boots to get to the front door. (Hint: if you are a member of the Archer class, you can use teleport arrows and shoot just above the doorway.)
Speak with Nichol to begin Chapter 2.