Red Hood is a side quest in World 1 - Kanterbury Forest.
Quest Completion
The player can obtain the quest in 1-4 Forest Border by going through the house and out the right side, where the player sees Elvira running away, dropping the map to the Dangerous Forest in the process.
Upon entering the Dangerous Forest, the player sees Elvira punch a goblin, who ricochets off of the player before running away. To the north there are berry bushes and a hidden chest, and to the east is the path onward. In the next room, the player can choose between the left path, where the player has to fight several goblins, the right path, where the player has to solve a quick puzzle to get through or choose neither by using the hidden middle path. Either way, the player continues on to the next stage.
In Red Hood's Hideout, there are a number of caged goblins, orcs, a rabbit and a woman that the player cannot interact with. Beyond is Elvira, who chases an orc around before crashing into the player and losing its trail. She blames the player for making her lose track of the orc and demands 1,000,000 gold as compensation, but no matter what the player chooses, she decides to attack the player. Upon Elvira's defeat, a flying wolf-like robot notices her failure to defeat the player and subsequently reports it to her Grandma. The player can then convince Elvira to join the player's party, due to her Grandma's punishment, ending the quest.