Thanks Fizzii and Radiant for the hints. I'm now generally where everybody else is. A couple of things I have been able to do that I don't see mentioned are:
Spoiler
I can give the crab to the guy standing in front of McDragons and he gives me a dragon egg and game board in return. I can eat the dragon egg but nothing happens. Who knows what the "red herring" is for.
Knowing this game, I bet it has a crucial purpose.

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