1. When you return to Camelot and talk to Merlin, he tells you that you must now go to Castle Sanguine by finding your way through Blinder's Way. Use the map screen to warp to Welton Village and from there, leave the town through the north exit. Keep going north until you find a pair of gates that previously blocked your path. Walk through them to begin your long winding road through Blinder's Way.
2. If you got the Map Scrap from the Mapmaker in Welton, you can view it to see a map of Blinder's Way. There are a few problems with it, though. First of all, there appears to be WAY many more warps on it than what actually exists in the game. Secondly, it's still difficult to figure out where to go because of how tiny the writing is and how confusing the layout is. It also appears that some of the warps are labeled wrong. You basically want to end up at that letter "Y" on the far right side.
3. This is the contents of the book you gave to Erek of Tintagel. It deciphers the runes you'll find in Blinder's Way. The problem is that this still isn't going to help you much unless you know the key to this puzzle...and the key is that you want to take the warps in order so that they spell out "BLINDERSWAYKEY". Now it starts to make more sense. (NOTE: When I first did this part of the game many, many years ago, I couldn't figure out the significance of the book and just did it by a combination of drawing a map and trial-and-error.)
4. As soon as you go through the gates to the beginning of Blinder's Way, take the first path going right and keep going all the way to the end of the screen. Before you leave, you'll notice Darren's Shield sitting under a tree. Grab it.
5. Walk one screen to the right and go right and down just a little and you'll see a couple of teleporter runes. There is one that looks like a big letter "A". If you compare it to the runes in the Book of Eld, you'll see that this symbol actually means "B" (despite what it looks like.) Since "BLINDERSWAYKEY" begins with "B", this is the first warp you'll want to take.
6. Now you're in the middle of a ring of trees with a single warp that looks like a "NO SMOKING" sign. That's the "L", so take it.
7. Now you have a choice of two warps. Take the one to the right, because that's the letter "I". I have no idea how to explain what that looks like, so just take the right one (the one below my guys in the screenshot.)
8. The italicized letter "e" you see here now is actually the letter "N". Take that warp.
9. You're in the middle of some trees. Walk through them to the southeast to get back out to the trail. Then go just slightly northeast until you see a break in the trees to your right. Go through the break and you'll find two warps. Take the lower one, since that one is the letter "D". (It looks like a bunch of swords stuck together.)
10. Now you have a choice of four warps. The one to the left, which looks like a letter "n" being squeezed in a vice, is the letter "E". Take that warp.
11. Finding the next set of warps from here can be tricky. Go east until you come to the trail, then follow it southwest. When you come to a fork in the road, keep going south, and don't stop going south until you come to one of those gate things with a blue orb above it. Now go east. You'll come to a clearing in the woods. There's a hidden path through the trees to your right. Push through them and you'll easily find it. (Arthur is facing the correct spot in my screenshot.)
12. When you come to the clearing on the other side of the trees, go north until you find a happy face. There's your letter "R". Take the warp.
13. From here, take the upper warp (it looks like the symbol used by the medical profession.) That's the letter "S".
14. Now you're in the middle of a ring of trees again. Simply walk straight west to go through a secret passage and arrive at the trail again. Go south and then take the first trail going east. Follow it around the bend of trees, and now here's the tricky part. Somewhere along the trees lining the upper part of this road is a hidden passage. Arthur is standing right below it in my screenshot. Simply walk up through it to find the next set of warps.
15. Go north to find an upside-down letter "R". That is actually the "W". Take the warp. (Actually, technically, you could skip this one. Some idiot left a hole in the upper row of trees that are supposed to be sealing off the next set of warps. You could alternately just walk to the next warp through that hole...)
16. The next warp you want to take is the one that looks like a "NO SMOKING" crossout with two wavy arms (it's to the left in the ring of trees.) That's your letter "A".
17. Only one warp to take here. It's the "Y".
18. Now you're in Castle Sanguine's basement. The upper warp (the one that looks like the letters "Yc") is the letter "K". Take that warp.
19. They're trying to trick you here. The italicized "e" is NOT the "E". The "N"-in-a-vice is what you really want to take.
20. You just took a "Y" a few warps ago, so of course you know to take the bottom one here.
21. From here, work your way through Castle Sanguine to reach the boss. The castle layout is pretty straightforward, but refer to the Dungeon Maps if you still have any trouble, and the Boss Strategy for help with Blinder himself (although if you find him difficult then you're going to LOVE the final boss.)
22. When you're done, you'll have to bring Wally back here to collect his key. If you're still having any trouble with Blinder's Way, refer to the Maps Section for more help, but I think this guide is better than trying to figure out that spaghetti mess. Congratulations! End of Quest #3.