I know I need to get the sleeping dust via General Binx, but the side quest with him was never triggered because I gave the statue of Lionel to someone else. Can I still get the sleeping dust?

I don't think so. If i remember you have to return the statues to the elves. maybe you have a save point in a different slot?

I returned one to the elves (to save the king) and I think I gave the other one to the thief. Maybe I can buy another one at the island market.

To get the sleeping dust has nothing to do with the statue.

To get the dust, you need to make sure there is no corn in the squirrel's cave. If there is corn, then you need to finish that quest. Go to Brumwich to finish the corn quest.

bah as soon as i read that i remembered =s I need to replay aveyond

I feel stupid for asking this question now that I've figured it out. I read a walkthrough on Gamezebo that confused me, but I'm guessing it was just a typo in the walkthrough. Thanks for the clarification.