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
Now, leave the house and the swamp. Return to Woodtick, and visit Mad Marty's. Walk over to where the Men of Low Moral Fiber are "performing" and pick up the Bucket by them. In order to get the Bucket, you have to pick the "Is this your bucket?" option. Now, go back to the swamp, and use the bucket with the swamp. Back to Woodtick!
Go to the bar, but don't enter through the main hatchway. Instead, go to the window to the left of it. Once inside, you can talk to Bernard the Chef, but he isn't very chatty today, what with his vichyssoise in the works and all. So 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, close the door. Notice that it doesn't shut completely.
Use the Bucket o' Mud with the door. Hehe. Now hide behind the dressing screen and watch as Largo enters and chaos ensues. Now head to Mad Marty's. Watch the amusing sequence, then return to Largo's room and go inside. Close the door and pick up the laundry claim ticket hanging there. Go back to Mad Marty's and redeem the ticket. Once you have the Pearly White Bra, you've just collected the Thread!
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 up to 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 look at the help wanted sign outside. Go inside and talk to the Barkeeper about the sign, and he'll tell you that the position is filled. Curses, foiled again...
Now for some fiendish employment prep. Go to the swamp and enter the voodoo hut. Get the String beside the skull on the small table. Now leave. Go to the beach and pick up the Stick laying on the ground just to the right of the entrance. Go back to Woodtick and head to the Inn. Look at Pegbitter's bowl and then pick up the Cheese Squiggles. Now, head to Mad Marty's. Walk up to the box and open it sitting beneath the sleepy pirates.
Now use the Stick with the box, then use the String with the Stick. Use the Cheese Squiggles in the box and walk a short distance away. If you're far enough away, the rat will go to the box and nibble on the Squiggles. Deftly pull the string and the rat will be captured. Now open the box and pick up the Rat. Head into the bar kitchen and plop the rat into the pot of cold soup. Now, go out through the window and enter the bar proper. Ask about the stew, and Bernard will soon get 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.
Now that you have money, you'd think you would be ready for a ship. But, there's one more thing you need. Head to Wally's and wait until he puts his monocle down. Grab it, and then skip town.
Once on the overview, head to the Peninsula and then enter the house on the dock. Talk to Captain Dread. Give him the monocle and the money, not necessarily in that order, and you're all set to leave!