Driftwood is a chain of islands south of Bowerstone. It is the first area in Albion to be home to gypsy caravans. If you wish to explore this area, you must complete three side quests: Gift Wood for Driftwood, An Island Getaway, and Pest Control. After completing these quests, you will be able to access the Driftwood gold key.
The Gold Key is found in a reliquary. You can use this door to unlock a secret library. Once you have a Fireball gauntlet, you can use it to light torches in the next area. To do this, you need to step on the red or blue tiles. This will reveal the order of the panels. Depending on what you choose, you can hit the flit switch in driftwood with either a melee or ranged weapon.
Hobbes, one of the main enemies in Driftwood, is located on three large islands. He can be killed in batches. You can return him to Robin, the mayor of Driftwood. However, Hobbes will prevent expansion of the area.
Hobbes will be a major annoyance throughout the game. He blocks your progress and prevents you from reaching other islands. Fortunately, you can kill him with a melee or ranged weapon. You can also zap him with magic.
After you have completed your side quests, you will be able to travel to the coastal islands of Driftwood. There are several to be explored. Using the flit switch, you can reach the middle island and its pedestal. Those islands can only be reached after the second stage of development. Eventually, you will be able to build a bridge between the middle and third islands.
Before you can begin your final quest, you must get a letter from the Driftwood villager. You should then leave the region for a couple of days. When you return, you should start the “carpenter” quest. But before you do this, you need to lead your character to the Driftwood.
While you are exploring the area, you can activate the flit switch on the right-most island of the settlement. This will lead you to a warp zone. In this zone, you will find a ruined structure. From there, you can take a short path ahead until you reach a flit switch.
The Flit Switch will be located on the stone pedestal on the far right island of the settlement. During the first stage of development, the flit switch will move through various activation types. You can smack or shoot the switch with a melee or ranged weapon to activate the pedestal. Alternatively, you can follow a set of platforms that lead to the pedestal.
To reach the third island, you must double back past the mine. You can also vault down the entrance trail and follow the road slanting upward. You can then swim around the left side to the third island. Several new caravans have moved here, including a gift shop.
For more information on Driftwood, see Driftwood in Fable III.