Fugue Forest is unlocked during the green bell quest. After you have started the green bell quest, go into Fugue Forest and a cut scene will be triggered with you and Cain. Cain will tell you to go ask Dale, the carpenter, for the key to Fugue Forest. Dale has the key and he asks you to find Luke for him in the forest. I hope this helped!-AriCharae
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it is the key you need to unlock the entrance to the watery cave so you can find the blue bell (ben's bell) you get it from paolo
The watermill in Flute Fields you don't need to unlock because you can use it anytime. The one near your farm needs to be bought before you can go in and use it. The windmill, on the other hand, will work if you ring the Red Bell.
You must unlock Fugue Forest before you can get Wood. Once you have take your Axe and chop the stumps found there. It will take many hits to break the stump. After you have gained enough experience with your Axe you have it upgraded. Then you'll be able to break stumps faster. And you can even cut down trees once your Axe is good enough. You can also get Wood by winning the Foraging Contest at the New Years Eve Festival on Winter 28th.
Go to the site called www.fogu.com/hm/ and click on Harvest Moon Island of Happiness. Then go to Villagers and look for which one you want to unlock, and it will tell you how to.
I have it but i thinh you have to unloch channel 2 first(I did)and unlock a certain amount of harvest sprites.