> How do I get in the shack near the idiots house?
> Heres my inventory.
> bucket
> rope
> stone of strength
> dead fish
> broken sword of failing
> pick
> key of question
> life preserver
> diving mask
> ticket
> magic armor
> food rations

First of all, specific advice for you: Forget about the shack. You can't get in there until much later. You need tons of other things from all sorts of other places, to eventually lead you to getting the thing you need to open the shack. On the other hand, you have everything you need to get to the second world in the game. Explore in the forest west of your house, for a start.

Second, some general advice for you and for anybody else who might be reading. It seems like people are reading this forum, seeing that somebody else is talking about a particular part of the game, and then they start focussing all their attention on "How do I get to [whatever] or do [whatever]?"

Trying to play the game like this is IMPOSSIBLE. That isn't the way these games work. For example, in your previous post you asked where the sage is. At the stage of the game you're at, you shouldn't even know there IS a sage or why you need to find him. Just because people who are further along in the game are asking this question, doesn't mean it has any relevance to you, at an earlier stage of the game. You just can't rush ahead and skip stages to make anything happen sooner.

Trust me, I know how these games work, I've played almost all of them and I wrote one of them. The best general advice I can give anybody, about any game, is "every time you get a new item, go all around the place again and see what new options you are given." Sometimes this is easier than other times, because the new item might have an obvious use. If it doesn't, simply going all around the available locations again will lead to you progressing, in virtually ALL cases.