Speak with Magic Arpan
Magic Arpan is waiting you, speak with him.
To speak with a NPC, click on him with your mouse, or select him with your N key, you can then start to chat with him with the T key.
Open the Chest
You need to open the Chest, and to take the clothes from this.
To perform this action, click on the Chest with your mouse, or select it with your N key, you can then start to chat with him with the T key.
Equip an item
Open your inventory by using the F3 key or use your mouse to select it in the menu of your client.
Once you're inside of your inventory, you may equip the item by selecting it and clicking 'Equip'. Alternately, you can unequip an item by selecting 'unequip' to remove it.
Certain items perform different effects. Some will heal you, some you may use as weapons or armor, and some can be sold for gold.
Nard
Go outside and talk with Gugli, he'll tell you what we need.