BloodlineClassic help!

[TrogdorTheBold]

I searched the forum and didn't find anything related to the Bloodline Classic Quest, so I apologize if this info was already posted somewhere. I just finished Level 2 (The Steam Stations) and got the Magic Boomerang, but I can't seem to proceed any further. It says Level 3 is to the west, but there's a blue/orange block that I'm guessing I need some item for, but I've looked everywhere and can't seem to find anything else. Help?

-TTB