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Grounds
Back outside, you'll be rewarded with Gloria's Trophy for your good works. Gloria will exit out to the main grounds outside of the Asylum. You need to continue on through the next hall, to the Asylum Courtyard.
Lower Floors
Inside you'll get a cutscene. There's a crazy with a Napoleon hat, a crazy guarding the elevator, and a crazy tossing pictures out of an upstairs window. Approach the elevator crazy first. It will then be explained to you that you need a few items to create a Dr. Loboto disguise, allowing you to trick the orderly (the elevator crazy) into letting you ride the elevator up to the top. You need a "face", a "claw" and a "lab coat". You have the claw (Gloria's Trophy). Time to get the lab coat. Approach, speak to and enter Fred's (the Napoleon crazy's) head.
Waterloo World
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You'll be placed in a room with Fred and Napoleon. They are playing a board game. It is your goal to Help Fred win the battle in his mind, which means you must win the board game for Fred. First, collect the many items in the room, including the Hatbox Tag. Then, approach the table and speak to the two. When the conversation's over, climb the short ladder onto the table and enter the world of the board game.
Napoleon will send in a soldier to destroy a bridge. You are given two goals: Recruit a peasant to fight Napoleon's soldiers and Recruit a Carpenter to repair the bridges. Let's get a carpenter first.
With your back to the ladder, look left. You will spot a blue roofed building with yellow exclamation points coming from inside. Head over to it. Along the way you may run into some bombing enemies. If you do, knock them to the ground with a simple punch, then ignite them. This will cause them to blow up.
At the Carpenter's house hit your "Action" button. You'll shrink even further. Approach the Carpenter's door and knock on it. He won't help you until you take out the man on his roof, which means you have to Find a way onto the Carpenter's roof.
Back away from the Carpenter's house (suck up the Cobweb on your way), go into first person view ("R3" on the Xbox), and note the line leading to the Carpenter's roof. Follow it through the orange silo to the guillotine. You need to get to the top of the guillotine. Before you get to the top, you may care to note that a Cobweb and Suitcase can be found at the base of the guillotine. When you have those, head to the top. To do this, climb the roof of the house to the left of the guillotine, use the trampolines to gain height, then float over to the top of the guillotine (use the smoke from the chimney for an extra boost).
In order to get past the guillotine blade, go "invisible" and walk the line toward the silo. Take out the censors, move through the silo (note the Dufflebag), then walk the line to the Carpenter's roof. Again, eliminate the censors. When they're gone, hop on the rooftop trampoline to trigger the accomplishment of your goal. Hit the Vault then hop down and tell the Carpenter about your accomplishment. He'll emerge as a large game piece. You need to be bigger to move him.
Note the many busting corks around the board game (there's one in front of the Carpenter's game piece). Approach one and punch the cork off, then, quickly, ride your levitation balloon up the spout. This will return you to "normal" board game size. Use your Telekenisis to pick up the Carpenter piece and move him in front of the bridge. You may care to note here that you can move a piece to spots that glow blue when you hover over them, but not spots that glow red.
The Carpenter will automatically rebuild the bridge, which means you need to find a peasant to fight for the cause. Head over to that yellow roofed house next to the guillotine (grab the Dufflebag Tag from the rooftop), and hit "Action" to get down to "small" board game size. Knock on the door. The peasant will require you to Restore his faith in Fred. To do this, you're going to have to speak with Fred. Find a cork to upgrade your size, then locate the ladder from which you entered, and climb out of the board game. Speak to Fred to receive Fred's Letter and take the letter back to the Peasant.
With the Peasant as a working game piece, move him with your Telekinesis to a spot next to Napoleon's soldier (directly across the newly rebuilt bridge). One soldier down.
Napoleon will destroy another bridge. Use your Telekenisis to move whatever the obstruction is in front of the bridge, then move your Carpenter in front of the bride. After he repairs it, it's time to find another peasant willing to fight for the cause. Go for the house between the two bridges. Knock on the door and the peasant will tell you he will fight if you can Find a way to secure the financial future of his family. Only one person can do such a thing, and that's Fred. So, exit the board game again and speak to Fred.
Fred will mention a Rare Coin. Speak to him again about it and you should figure out he left it in the fireplace. Use your Telekenisis to collect the Rare Coin, or you'll get burned. Take the Coin to the peasant, then move the peasant next to Napoleon's soldier. The two will battle. You need one more peasant.
Across the second bridge is another house. Knock on its door and the peasant will require a weapon from you. You'll be shown the placement of the weapon within the stronghold. Approach the stronghold (its the large castle-like building, next to Napoleon's soldier piece). Face it from the front side. The weapon you need is in the right section, in front of the bridge (while looking at the right section, notice the Cobweb covering the fake window). However, to get to the right section, you must move through the left section, also in front of the bridge. Enter the left section of the stronghold via the Cobweb covered door.
Inside, take out the censors and swing your way up to the rafters above. Jump over to the alcove, then shimmy under the barrier to the second floor window. Walk the rope and jump on the pole at the end. Climb it to the top, then float over to the rooftop of the building. Take out the censors. When they're out of the way, ride your Levitation ball toward the right side building, using the curve of the roof for a boost. Jump to the horizontal pole and swing with everything you have. Let go and float over to the lattice alongside the right building. Climb it to the rooftop and, voila, you're right where you need to be. Suck the Cobweb off the second story window. Grab the Steamer Trunk Tag, then burn the haystacks inside to reveal the Musket. Take the Musket to the peasant, then place his piece next to Napoleon's soldier. Again, they will battle.
With the third soldier out for the count, you have two more steps in defeating Napoleon. First, you must Free the gears and lower the drawbridge to Napoleon's stronghold. Second, you have to Recruit a Hearty Knight to take Napoleon's stronghold. Hit the gears first.
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Walk the ropes over to the main body of the stronghold, then jump off and take out the censors along the left side. From here, wind your way around and up the platforms (collect the Steamer Trunk from the first platform) and ropes surrounding the outside of the stronghold until you emerge on the front side again. Jump from the rope to the tower with the bomb enemy atop it, then take him out. Jump and float over to the next tower. Take out the bomb, then use your Telekenisis on the object jamming the bridge gear. Before you begin your search for a Hearty Knight, go ahead and take the bridge up into the stronghold and hit the second Vault.
With the bridge down, all you have left to do is find a Hearty Knight. The Hearty Knight can be found inside the Restaurant. The Restaurant is on the opposite side of the board game, across the river from the stronghold. It's a large building with a blue roof, directly across from the pink bridge (beneath the pink bridge you'll find a Cobweb and the Purse Tag, on the bridge you'll find a Maximum Projection Depth Increase). When you're "large", you'll spot the Suitcase Tag on the hill next to the restaurant. When you're "small", you'll find a Cobweb and Hatbox located down a small set of stairs just past the ladder on the back side of the restaurant. When you have those items, knock on the door of the restaurant, and you'll be told to Recruit some escargot for the Hearty Knight. Alrighty then.
The Escargot are located back on the other side of the river, in the orchard, behind the stronghold. Enter the orchard, take out the censors, then collect all ten Escargot. This will create an Escargot game piece. Move it over to the Restaurant and the Hearty Knight will emerge in his own game piece form. Move the Hearty Knight game piece into the stronghold and consider the battle in Fred's mind won.
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