Re: Dragon Prison
The boy gives you different things for different amounts of dots. At 20 he gives you a powerful weapon that saves you a huge amount of grinding for gold, so only the weapon at the snowy island city is (slightly) better (and you can do without it).
They're not hard to find, just keep an eye out.
As for after the tower and you defeat the demon in the school, if going to the port city and talking to everyone doesn't trigger a scene, you're probably using 1.00, and it's broken. Download 1.01 and move your save files over to continue. Talk to the mayor and the townsfolk to bad stuff to the poor princess.
After that there's a few directions to head (since you get a ship after the mansion is finished), but the general order seems to be the dragon island (use the map, you'll see it), followed by the desert. To get into the major city on the island, you must be nude, but thankfully there's a small camp you can buy nude "armor", which is a must, because through the city is an area of map with decently tough enemies, and simply using no armor will kill you fast.
This seems to be where everyone is stuck shortly after that.
The ice city doesn't really have much there.
The dragon city has nothing else to do.
The pyramid (in the desert) no one can get past the entrance.
The island tower you can't get inside.
And going back to previous cities accomplishes nothing.
It's possible that another event is messed up in coding... Other than that, I can't guess what I'm missing at the moment, though I may have overlooked something obvious by accident, I do that sometimes... (but probably not since everyone posting seems to say the same thing about being stuck here.)