After talking to the ghostly Elder of Itory Village and finding the Incan Statue A, you go to the Moon Tribe Camp.
Meet the Moon Tribe
Go up the stairs to the north and walk into the middle of the area surrounded by stones. A strange voice speaks to you and asks you to figure out what it is. Choose whichever option you want. Then the Moon Tribe will appear. They speak of being bathed in the light of the comet, which is a remnant of a battle long ago. It comes every 800 years, and this is the fourth time. The light from the comet changes the creatures it shines on. The light increases Dark Power and could destroy the world.
One of the tribe tells you to look for the Incan Statue in the cave below, so go into that cave.
Get the Incan Statue
In the cave, the Moon Tribe says to destroy the caterpillars within 20 seconds in exchange for the Incan Statue. The caterpillars are a remnant of the light from the comet. The caterpillars are all near the top of the area. If you get rid of them in time, the Moon Tribe opens the stairs up to the platform with the Incan Statue B on it. Go up and check on the statue to get it.
Outside, talk to Lilly and she will see that you have the two statues and will ask if you are ready to go to the Incan Ruins. If you are, say yes and you will automatically go together to the Incan Ruins.
Incan Ruins
At the ruins, Lilly tells you of the puzzle of the Incan Ruins. The Incas are said to have built a ship and filled it with artifacts and gold, but there is no record of the ship leaving. It is known as the Incan Gold Ship.
Go east toward the cave entrance. When you go up to the entrance, Kara pops out and says that she has been waiting here since she doesn't want to sit around while Will works hard. Lilly stays outside with her.
Lilly says to put the statue on the Larai Cliff below the ruins, where the spirits' breath cannot reach. The valley wind will lead you to the Gold Ship.
There is a small hole to the right of the cave entrance, but you can't go in. Go into the cave entrance to enter Larai Cliff.