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Once you regain control after the cutscene, you'll need to leap over the side of the ship and just slowly move along after Triss and Roche. Move forward and listen to the conversation until they come to the stop at the fallen tree. It seems like we found our elf.
Iorveth will want to talk for just a little bit. You have two options for the conversation, but it seems that all roads lead to Rome. If you're quick, you can pick the beginning conversation option to have Triss whip up a paralyzing spell. If you do this, the rest will procede automatically, but ultimately fail. If you wish to talk to him normally and try to talk him down, it will ultimately come to blows as he signals the ambush.
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When the conversation ends, you'll find yourself inside Triss' protective shield. Roche is a little busy at the moment, and Triss isn't up for much of a fight, so we're on our own. Thankfully the battle shouldn't be too tough. The shield will still be projected from Triss, and it will move as Roche carries her forward.
Don't worry about sticking right next to them. In fact, you'll probably want to stay mobile and move around them. Enemies will come from the front and back, but not usually in anything greater than pairs. A single elf should die easily to a quick flurry of attacks. If there are two or more, then you will probably want to hold the parry for a moment and then counter attack. Don't be afraid to try out some heavy attacks too. The fight is relatively short, so failure won't necessary mean death. A good hard hit can take them out of the fight quite quickly. These fighters didn't seem to be particularly tough (they get much tougher in the forest later), so just get your combat legs back and test out a few moves on them.
After a few waves of attacks, you should make it close enough to Flotsam to trigger the ending cutscene. As Roche makes it to the gate, Ioverth will call off the attack and you'll have about one minute of peace.
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A Great Day for A Hanging
As you move into the town, you'll note that it's all off kilter because everyone came out to watch the hanging. Move straight through the town and approach the back square. This is where you'll find the scaffolds and the executioner, and two old friends.
In order to save Zoltan and Dandelion, you will find yourself in a fight with the guards. You can demoralize them a bit, and get a little of the pressure off of you, by arguing Dandelion's innocence. It still comes down to the fight though. I hope that you're good at quick time events, or did well in the first fist fighting minigame in the dungeon.
These will be a little harder than the first few in the prologue. The key is to just watch the four sides of the screen for the flash. Also try to watch Geralt. Numerous attacks will trigger a secondary QTE to react to the enemy's counterattack. If things are still slightly slow, it means that another key is going to pop up. Be ready for it, and react.
You'll need to knock out a few guards and then tackle the executioner to bring the whole thing to an end. Like I said, there just isn't much of a trick to this. You can either win the QTE or not. Give it a few tries and you should be able to make it through. At that point. Loredo will come out and break up the fight. After he executes the remaining elf, he'll agree to let Zoltan and Dandelion go free while you try to prove their innocence.
Once you talk to them, the town should settle down. The shops will open up, your friends will move to the tavern and the town itself will be open for exploration. I think it's time for a little investigation. Although, it's probably a good idea to go to Loredo's house in the evening to answer his invitation, as one of your first quests.
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All information and screenshots from a "Normal" difficulty playthrough of Witcher 2.
Due to the branching nature of the game, my experience may differ from yours. Feel free to comment on any differences that you note.