Go to the fountain and use Telepathy. An old man will appear and will act like an ATM machine.
Red Guard's password:
Use Telepathy next to the guard. The answer will be "Crocodile", and he will let you pass.
Killing the dragon:
Use the rope for a way easy fight with the dragon in Magicant. He almost always stays bound for over 6 turns.
The Air Gun for the weakling is in Youngtown. Go to the empty church, and start moving north-east. You will see a little kid, keep moving to find two buildings. One is a hotel and the other is a general store. Enter the store and buy the Air Gun for 1200 dollars.
To get a magic candy for the weakling (raises his status), talk to the cat swimming in water as soon as you get to Magicant. Note: You must have the weakling in your party.
In Magicant, after meeting the Queen, go to the east of town and walk on top of the holes found there. One hole transports you to the dungeon which contains the exit to Magicant. To reach the bottom floor, move right, left, left, right. Once on the bottom floor, you will see a sleeping dragon. Towards the right of the dragon is a hole. Drop into this hole to fight an enemy named "Fish". After defeating Fish, you will receive an Onyx Hook. Whenever needed, you can use this item to return to Magicant.
Use Telepathy next to the cat that swims in the ground to get the Ribbon Armor for the girl. Note: You must have the girl in your party.