Solution by "Kedenan", played on the Amstrad

Examine guide. Get paper. Read paper. S. Get frog. Examine frog. Kiss frog. E. SE. S. W. S. Examine blankets. Get coin. N. E. N. NW. W. N. N N. NW. NE. Get garlic. Climb cliff. Move skeleton. Get bone. D. SE. SW. N. Examine well. Drop coin in well. N. Examine writhing demons. Read writing. Whisper beware levite. Whisper beware levite (and the doors grind slowly open).

Drop paper. N. N. E. Get crucifix. N. E. Get chair. W. W. S. S. W. Drop chair. Stand on chair. Get shield. Get chair. E. N. N. N. Examine armour. Turn helm. Get brass key. Drop crucifix. Drop garlic. Examine fireplace. Climb chimney. N. D. Examine door. Pick lock. Drop bone. E. Get rope. W. U. S. D. W. N. Open chest. Get block. Drop shield. S. E. E. N Wedge door with block. Slide mirror N. Get iron key. S. S. W. W. N. W Examine door. Unlock door. Drop brass key. W. Lift table. Get manuscript. E. S. E. Get garlic. W. N. N. Say up. S. W. Examine desk. Open top drawer. Get silver key. E. N. Say down. S. S. E. S. S. Drop iron key. Drop manuscript. Drop silver key. Drop rope.

N. N. W. N. N. Say up. S. S. S. S. E. Get copper key. S. Draw curtain. NW. W. Examine door. Unlock door. Drop copper key. W. W. Drop chair. Get gold key. E. E. Open window. S. Get pipe. Exam gargoyle. Read word (remember). N. N. N. E. Get hammer. W. N. Drop garlic. Say down. S. S. E. S. S. Drop gold key. Drop pipe.

N. Examine table. Get cheese. N. E. E. Get box. W. Drop box. W. get crucifix. W. W. (Sound of explosion -the box has blown up). E. E. E. D. Get mouse. Drop cheese. U. W. W. S. S. W. Examine door. Get Iron Key. Unlock door. Drop iron key. Get manuscript. W. Play organ. Drop manuscript. E. S. S. S. S. S. S. E. SE. S. W. S. Break table. Drop hammer. Get plank N. E. N. NW. W. N. Get branch.

Light branch. N. N. N. N. N. N. Get pipe. Drop crucifix. Drop plank. Get silver key. W. D. N. Examine door. Unlock door. Drop silver key. N. D. Play pipe. Drop pipe. N. W. Get paint. E. N. Drop mouse. S. S. U. S. U. E. Get gold key. Get plank. Get crucifix. Get rope. W. D. N. D. N. N. N. NW. NE. NW N. E. Tie rope. D. N. Bridge gap. N. Throw paint. Say sesame. Wave crucifix. N. Unlock door. W. Unroll carpet. Get jewels. Stand on carpet. Say (The word from the gargoyle - you did remember?).

The magic carpet rises slowly from the ground and accelerates. You stand on a broad road leading over the brow of a hill. In the distance you can see the lights of your village and you know that the fire will be blazing in the hearth and the kettle will be on for tea. Behind you is the dreaded castle left for ever.

As you step out you are glad that you have accomplished what you set out to do and that you are rich beyond the dreams of avarice. It's a pity about your guide, but he knew the risks involved.