He is under the vault. You have to go to sleep in the hotel room, then you will be woken up by a fraud ghost haunting. One of the ladies will tell you if you want to see the lady in the window play to her on the violin. Find the violin in the living room of the hotel. Go to the vacant house where tho woman in the window is seen and play it to her. It turns out she is NOT a ghost. She tells you go to the bakery, and when you do Jane, the baker gives you a bunch of high-tech ghost hunting equipment and a plate of hot cross buns. Meanwhile, a ship pulls up where that guy has his tent. Go to the ship and the man/ captain asks if you know a good hotel. Give him your room keys, and he'll give you access to his boat. take the boat to the old abandoned prison. When you get there find the warden's office. Leave him the hot cross buns that you have in your inventory, and BAM! His ghost will appear. He tells you his story, and you go down to the cell of the prisoner that "supposedly" escaped. Move the bed and you will find the hole dug by the prisoner. The warden shuts you in the cell, so you have to go down in the hole. Talk to the prisoner, he'll tell you his story.
you check at the castle
go to prison h
in the prison office
You save Ghost story island
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There isn't a captain involved in Ghost Story Island.
To the bathroom.
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Exit the tunnel. Now, you have to get out of there yourself. Use the pickax in the cell, and you'll end up outside the cell.