I've been at this for over an hour now; as much as I like to do these sorts of things without looking up tutorials I'm about at my limit. For those of you not wanting to spoil the tall tale I advise not looking any further.
After I killed the skeleton captain at Canon Cove, I picked up the scroll the he dropped which added an extra riddle to the back of the quest book (in code of course) and I've deciphered it perfectly (to my knowledge) but have beed stuck on the actual riddle aspect of it.
The Quest reads these five lines in order:
From beach camp walk North Star when
sun south rising sun walk when tree
South North Star walk 3 South setting sun
walk 7 dig
Please help, this riddle makes no sense without grammar and I'm struggling to even guess where the skull could be.