Go to the bait and tackle shop and pick up the mug next to the candle. Then keep doing 'pick up' in the space where the mug was and you'll get all the items you need to complete the game.
Starting your quest in Pirate's Square, your first aim is to get suitable pirate clothing to blend in with the locals. Take a wander along Mugger's Alley and find Dr. Chop's dentistry. Take the rollerblind from the window and ask the Doc about gaining money and clothing. Subject yourself to the Doc's dentistry ways and let him pull two of your gold teeth.
Next stop is Jolliest Roger's Place. Ask the manager a few questions, concentrating on Hook, the war and how best to get the hat. Leave Roger's and walk behind Pirate's Square to where Mrs Smeedle keeps her washing. Grab the pole and the anchor and take a look at the jacket. Then make your way back to Pirate's Square.
From the square head towards the Pier and pick up the rope that's lying around. Use the rope on the anchor and go to the Crossed Swords. From there take the two cups from the tables and leave. Make your way towards the Bait and Tackle and take the cup you find there. Head upstairs to the balcony above the square and get ready for some Infdiana Jones-style hijinks. Use the rope and the anchor on the clock and start swinging across the Square. Grab the hat from the passing pirate as you go. Well done Indy.
Knock on Mrs Smeedle's door and then quickly swing back to the balcony while she's busy answering it. Head downstairs as quickly as possible to Mrs Smeedle's washing line. Use the pole to get the jacket from the line and examine to find a coin, which you should take.
Now that you're rich enough, head back to the Jolliest Roger and find Fake Jake. Talk to him and find out if he needs a drink. Give the three cups to the bartender and pay him with the three coins. He'll give you three foaming cups of brew in return. Give these to Jake and watch him drink himself under the table. Once he's asleep, take his trousers. Head back to Mrs Smeedle's and use the rollerblind to gain some privacy while you change into your pirate clobber.
Now your ready for Hook's ship. Look in the pots to the right to get some more cash and head for for the town tailor. Ask her for a metal detector and give her the money in return for a magnet. Head for the beach and go treasure hunting by using the magnet on the large X (despite what a certian Mr Jones would have you believe). Make your way back to Hook's ship and find the Hoff-man himself. Now prepare to go diving.
Take a look at the pulley base and the big shell. Use the pole on the ropes and use the shell to haul yourself up towards the look-out point. From here, go right to enter the Neverforest (that's never a forest). Maze time folks, follow these directions to escape, right, right, right, up, right, up, left, left, left, left, up, right, right. After you've been trapped, enter the tree.
Go to the round pond and have a chat with Tinkerbell about everything (you'll be amazed how much she knows about Bird's Angel Delight). Head for the slingshot and chat to Ace about everything (the tales of how molten lava is formed will be the talk of any dinner party). Go to the workshop and pickup the arrow. Now head towards the jogging area and do a Jane Fonda. Use the excercise eguipment three times to tone up that body. That's right, can you feel the muscles tightening?
Now go to the Avenger and take the net. Examine it and head for the Four Seasons to get some dead wood. Use this with the string and take the flower. Go to the chicken and use the conchshell on it. Grab the eggs while she's startled and return to the workshop. Give the eggs to the boy and go back to the round pond. Give the flower to Tinkerbell then take the branch from the tree.
Walk to the slingshot then use the strong elastic on the broken strap. Use the branch with the string. Return to the workshop and use the bow with the panpipes. Take the pipes and head towards the cliffside. Use yourself on the far corner of the fence. Keep doing this (about three times in total) then ask Thudbutt what he thought about your antics. Go back to the slingshot and use it on yourself. Ask Thudbutt what his happy thoughts are then go to the dining area and have a chat with Rufio. Say "Oh Rufio".
Go to the round pond again and walk towards the middle of the screen to enter the Nevertree (that's never a tree). Talk to Tinkerbell then examine the bed, the chair and the fireplace. Talk again with Tinkerbell and your memories of long-forgotten but better times should come flooding back.
Now that you regained your faith and discovered the truth about Peter Pan it's time to go after the nefarious Hook. When the sword fight commences use the following Monkey Island-Style taunts.
Peter Pan the Avenger!
Good form James.
Tick-tock-tick-tock, Hook's afraid of a dead old crock!
You kidnapped my kids Hook. You deserve to die!
Put up your swords. It's Hook or me this time.
Peter Pan the Avenger!
And that's the end. The game is finished. Sit back and enjoy the reward that is the end sequence.