Help In Fights
Once you meet the Dwarf and do one of his quests, he will teach Lucy Dwarf Digger. When Lucy is selected, go to the Pan Pipes screen and play (1-2-3). A Red Dwarf will appear and help you fight for fifteen seconds.

Restore Health
When you meet the Druid and do a quest for her, she will teach Lucy Healing Waters. When Lucy is selected, go to the Pan Pipes screen and draw a V on the Coridal Touchscreen. Everyone that is with you will recover 10 HP.