Part I: The Largo Embargo
After your stimulating conversation with the pirates, you automatically leave the beach and travel to Woodtick, this island's local town. Upon arriving, try to walk to the left. You get mugged by Largo LaGrande, the island bully. Now all your money is gone!
You can wander around Woodtick and talk to everyone if you want, and most of them will hint that what the world truly needs is a Voodoo Doll of Largo LaGrande. You don't have one, so you'll need to go to the swamp when you're done chatting with the townsfolk.
In the Swamp, use the coffin. Now row all the way to the right and under the skull thing. A platform raises out of the water and takes you into the Voodoo Shop. Walk to the right and talk to the Voodoo Lady. Talk to her about everything, and at some point you get the ingredients to make a Voodoo Doll of Largo LeGrande.
Something of the Thread
Go to the bar, but don't enter through the main hatchway. Instead, go to the window to the left of it. Once inside just grab the Knife you see on the table and exit the same way you came in. Now head to the Inn. Use the Knife on Pegbitter's (the small, angry lizard) rope, and he'll scamper off. The Innkeeper chases after him. Now open the only other door in the Inn and enter Largo's room. Once inside just pick up the Clean, White Shirt that's sitting on the bed.
Something of the Head
Very easy. Just enter Largo's room by the same method as in the previous section, and pick up the Toupee from the wig stand.
Something of the Body
Also very easy. Head to Wally's (the cartographer), and pick up some paper from the stack in the lower right. Now leave and enter the bar. If you've been in here before you have witnessed Largo spitting on the wall. If you haven't been here before, then you will see Largo spitting on the wall. After there is plenty of phlegm on the wall, use the paper on it. You now have something of the body!
Something of the Dead
While you're in Woodtick, head to the entrance of the town. There's a sign there with a shovel on it. Pick up the sign, and you get the Shovel. Now, leave town and head to the Cemetery. Once there, go to the gravestones in the back on top of the hill. Look at the stones until you find the gravestone of Largo's grandfather. Use the Shovel on the grave, and get something of the dead!
Thwarting Largo
Go to the swamp and enter the International House of Mojo. Give the Voodoo Lady the ingredients, if you haven't already, and she makes the Voodoo Doll. Now, head back to Woodtick and enter Largo's room. Once you confront Largo, use the Pins with the Doll, and Largo is beaten. Unfortunately, you show him LeChucks beard, which he takes so that LeChuck can be resurrected. Whoopsy...
Leaving Scabb Island
You need to leave, but first you need to charter a ship. To do this, you will need some money. If you polished the peg leg of the Man of Low Moral Fiber, you'll have 19 pieces 'o eight. Which is, unfortunately, 1 piece 'o eight too little. Of course, if you didn't complete this side quest, then you have zero money. Looks like someone needs a job...
Go to the bar in Woodtick and ask about the stew. You'll find out that the chef recently got fired and you can agree to fill the open position. Collect your advance pay and enter the kitchen. To get out of doing actual work, just sneak out through the window and leave town.
Once on the overview, head to the peninsula and then enter the house on the dock. Talk to Captain Dread and ask to charter a ship. You'll inform him that you have enough money and you're all set to leave!