Find the hooded man near the statue between the two bridges. Talk to him and agree to help him with the sparrow problem. There are two sparrows on the roof above the man. The next sparrow can be found atop a bush near the guy who challenged you to beat his race time earlier. The next will be on top of elaborate headstone in the courtyard. Two more can be found on the rooftop in this area, as well. The last sparrow is across the bridge, on a roof above where the pie baking lady is. Once they're all dead, go back to the hooded man and speak with him to get your reward.

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