I'm playing it now but i'm stuck! You liar! lol (not on VC though)

I have no idea how to use my compass with the map. I have 3 of the characters, the penguin, the horned lizard and the ghost looking fella but I can't find the special attack for the horned lizard
Also have the Eye of insight and also don't know what thats for. Off to find a walkthrough I guess. Just another reason why I never cared for 8bit games.