The Dink Network

Ok I am only fairly new to the Dink Game but I'm really enjoying them so far. However in the game I am playing now I am really stuck...I've spent a few hours trying to work it all out.. Maybe its just a case of a patch not being installed properly or maybe its just me but 1* I can't work out how to kill the monsters to get to the treasure in the first part.. and 2* Once I've done that where do I go from there. I have been down and spoken to the Goblin, have got the sword of pure evil and gone back to release the Goblin. What now ?? I'd really appreciate help

Thanks