I'm sure you'd have passed Istir Forest before on your way to Naylith Summit. Go search in there for a castle.

You can purchase Lydia all of the dresses once you find the secret room on one of the strange islands(the beach islands in front of moo hatchery and such). Click or press spacebar or enter in front of a single palm tree on the correct island). You will find yourself in a treasure room with a...guarding it. After you defeat what's inside, Lydia will steal all of the treasure and leave you with one gold object that you can use to finish the museum quest. Lydia will take the rest and one object will be of significance to Lydia (you will not gain gold). It will be an amulet that she can use to control Edward to buy her a dress. Test it out by selecting it in your inventory and then simply walk into a dress shop and ask for the additional dress. Hope I was helpful [/color]

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