After this cool splash screen (wait until it finishes just for fun :), and after the intro, you play again with Ronan the Warrior Duck, but riding a Bonca :) Billy the Bonca can hit with its nail, and Ronan the Duck can launch magic fireballs. Also, you won't find any Save Machines because you can save with the Escape Menu :) Last but not least, in the same menu you have a good idea: a quest log.
Ok, let's go.
From where you start, go 2 screens right and one screen down (or if you're lost, start from the fountain North and go 1 screen right and one screen down). You'll meet a peculiar guy. Then, go 2 screen down and 3 screens left to find him again. He'll propose you a quest. As in Stone of Balance, if you refuse it, you'll return to Windows (but it is also funny ;).
Well, if you are here now I think you accepted the mission. Let's kick Xanatos' ass :) The druid gave you a lantern, so now we can go to the cave. To do this, go 5 screens right and 1 screen up (from the stones), and enter the house. Read the sign. If you want, you can take the "donations", but I know you couldn't do that without being morally hurt ;) Arm the lantern, then go down the stairs.
This is a quick cave. Don't forget the strength potion in the third screen.
Now you're in the second part. There's a town on your right, but it's empty (but some gold and a healing fountain). Let's try to figure out what happened. Go south, and a guard will explain you. Hmm, how about a visit of the island? Use the bridge.
There, read the signs. If you enter, the guard will magically transform you into fresh meat, so it may be better to avoid this for now. Follow the walls going right, and you'll get another potion. Then walk around the prison, and then you'll find the window of the prison. Try to talk to the guys inside, and they'll tell you how to save them: you must poison the guard with a green mushroom. The green mushroom: it is in the bottom-left corner of the isle. To poison the guard: put the mushroom in the prison's fountain (just talk to the fountain). Then you can deliver people.
Back to the town, you can visit houses (just don't go to the one which used to be locked for now). You can chat and buy things at the merchant's, and I suggest you try that cool Inferno spell :)
When you're done, then go in the house at the East of the Town. The DMOD is over. Can't wait for RotD3 :)