You've returned to Windfall from the Forest Haven to begin the figurine sidequest.
Upgrade your Camera
Land at the pier, putting your sail back up if it automatically goes down. It doesn't matter what time of day it is when you arrive. Go find the disco guy who dances by the gravestone. Talk to him, then use your Wind Waker to play a few notes. He will notice and do a goofy dance to teach you the Song of Passing.
If it's night, turn it into daytime. Then go to Lenzo and give him the firefly that you caught in the Forest Haven. He will upgrade your picto box to take color pictures.
The Nintendo Gallery Side Quest
Now that you have the color picto box, you can officially begin the Nintendo Gallery side quest. It's very time-consuming, but I think it's a lot of fun.
To do this side quest, you take a color pictograph of a game character or enemy, then give it to the guy in the gallery at the Forest Haven. He will make a figurine of that character. He doesn't accept black and white pictures, which is why you had to have Lenzo upgrade your picto box.
There are some special figurines that you only have one chance to get, and some that you don't need to take a pictograph of at all. Throughout the walkthrough I will mention those.
As mentioned before, to get a complete set of figurines, you need a GBA and a Link Cable, but you can still get all of the other figurines and the prize for completing the gallery. You'll just be missing the one figurine that requires the Tingle Tuner.
If you're truly dedicated to this side quest and don't want to miss any of the one-chance-only figurines, do not save the game until you have gotten those figurines, because it could turn out that you messed up the pictograph. Just be warned that if you did mess up the pictograph, it can be pretty tedious to go back to your last save point and try again, so this is only for the truly dedicated. I'll warn you in situations where you will only have one chance to get a particular figurine.
New Things to do on Windfall
Anyway, back at Windfall, there are several optional things that you can do while you are here.
First, if you haven't played the battleship game across from Miss Marie's place yet, you can play it now.
Also, if you have 20 or 50 joy pendants, give them to Miss Marie. For 20, she gives you the cabana deed. For an extra 30, she gives you the Hero's Charm, which is a mask that you can equip on the Quest Status screen. Wearing the mask allows you to see the life meters of your enemies.
Now go over to Zunari's shop, talk to him a couple of times at the left counter, and agree to help him get more merchandise. He gives you the Town Flower.
Go over to the potion shop and talk to the lady there, then take her picture, making sure that her whole body is in the picture. Then show her the picture and she will give you treasure chart #33.
Now, go talk to the two gossiping ladies a couple of times until they mention Lenzo and his "mystery woman". Go into the battleship shop, up the stairs, through the door, and into the ferris wheel car around the corner. Face Lenzo's shop and change the wind direction to that direction. Use your deku leaf to glide into the little balcony. Go through the door. The chest on the left contains treasure chart #29, and on the right is 50 rupees. Crawl into the hole. When you get to the end, you're near the stairs that lead up to the photo gallery. Go to the left, and take a picture of Lenzo and the woman together. It doesn't matter if he spots you first.
Go back to those gossiping ladies and show them the pictograph of Lenzo and the woman. They'll give you treasure chart #24.
Now go up the ladder to the left of the arch that is left of Miss Marie's school. Go back to night time and take a look at the moon. If it's full, take a picture of it (with no clouds in front). If it's not full, keep playing the Song of Passing until it is, then take its picture. Go back to daytime, talk to the grumpy looking guy on the stairs until he tells you to show him a picture, and show him the full moon picture. He'll give you treasure chart #31.
If you want to have some figurines made, only fill two slots of your camera with pictures of people from town, because you will need a third slot free for later.
Go Back to Dragon Roost Island
Now return to Dragon Roost Island. This is a good opportunity to get a picture of Valoo. He is way up at the top of the island. Just head around to the north side of the island, get close enough so you can see more than just Valoo's shadow, but far enough from him that you can see his head, and take a picture.
From there, go south to the Forest Haven, but first, when you pass Bomb Island, which is one square north of Forest Haven, talk to the merchant there, then give him the Town Flower and agree to accept the trade. Keep trading with him until he gives you an Exotic Flower, although he might not give you that type yet.
Now back to the Forest Haven.