Go left at the path fork and you'll encounter a new type of enemy, the Hobbes. At the dead end you'll see the Cullis Gate, which you can now use to teleport here whenever you'd like.
Backtrack and take the right at the fork in the path. You can stop and deal with the traders if you'd like, then continue ahead towards the yellow map marker. Take out any enemies you come across, then go through to the Greatwood Caves.
You'll be greeted by another group of Hobbes. Try to take out the ones casting the large purple magic boulders before killing off the smaller ones. After they're gone, move to the yellow map marker and through to Darkwood Entrance.
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