Get the red pepper when you are in the mine in 'The Enchanted Forest level. When you get the red pepper, go in the river, fart, and blow up the fart near the large brown tree. Be careful -- stay out the ground's shadow or you will bump your head. Kick or punch the tree to make a bridge. Make the kids follow you across the tree, and put them in the gingerbread house.
The last egg is located in the same place where found find Little Red's basket in the falls.
Kick all of Merlin's soldiers into the T.N.T. pit. Then, use all of the T.N.T.s to burn down the doors. When you reach Merlin, super punch all of the spells, but do not super punch the T.N.T. Grab the T.N.T., go near the crystal ball, and flame the T.N.T. Go up the stairs and flame Merlin three times. Then, go down and flame Merlin two times. If you defeat Merlin, you will hear him say ''Ohh. never saw that coming''.
When you defeat Merlin and unlock the codes in the pause menu, you can go inside the Nintendo Gamecube through these places:
Prince's Castle: Go inside the window and try to get back, but miss.
Creepy Crpyt: Go on the church, then press R and L a lot to the north.
Mother Goose Land: Go to the farm and press R and L to any direction.