The Dink Network

im up to the part where, i need to find the dwarf to get the ancient artefact.. the problem is that going by dink solutions, once i find the bracelet, im surposed to go to the second town, burn down the tree, get my potions, then make my way north-west to the house with the stairs leading down, there im surposed to extinguish the flames..trouble is,i burnt down the only tree in the second town, and it didnt have a stairway.. and ontop of all that, the house that was south west had not stairs leading down... i cant find the house that has any stairs, i need to get to the dwarf to get the artefact... (am i looking in the right place...please help. (im in the town where all the people in the cave that where hiding, are living again in there houses)