Defeating "Dundellon's Nightmare"

Level 1: General hints
So you finally want to get rid of this annoying nightmare?

This is the key chapter of the whole quests, so I’ll try to keep the hints for this quite low on level 1 and 2 (though everything will still be revealed on level 3, of course).

Before falling into despair, I recommend asking some people about the Blade and that bloody curse. Yes, there are persons who can help you! Just imagine who might know anything about such curses or such kinds of ancient magic.
In addition, keeping an eye on your inventory while dreaming might help.
Last but not least, exploring the nightmare’s world thoroughly will reveal very important things.

If you do everything right, the prey will turn into the hunter, until the demon will be banished!
Level 2: I want to know more!
Level 3: Tell me everything!
Proceed to the next chapter.