
We got my son Skylanders on the Wii for Christmas this year. What a fun game! I've been enjoying it as much as my son has. (probably more.)
The premise is that you have characters/heroes deployed to save a fantasy-setting world from evil. In addition to a well-done video game where you kill bad guys and solve puzzles as you go through levels, you have characters with different sets of skills. There's a real-world figurine that represents each character, and you can swap them in and out of the game by placing them on the "Portal of Power", a wireless device that detects which character statuette you place on it.
Activision has a brilliant marketing scheme on their hands as well, bringing collectable physical goods and collectibiles into the video game world, very similar to the Webkinz business model. Throughout the game there's a need for a special kind of character, which means that to experience every part of the game, you need to buy several of these figurines.

In Chapter 3 of Skylanders: Spyros Adventure, the Legendary Treasure is located on the floating island down the first floating ramp on the ship that is almost near the end, right after the area that's locked, requiring an Earth Element character. (it's not in there, it's after that point in the chapter.)
This ship has two ramps, and to lower them both, you need to defeat the monsters near the second ramp. You're of course tempted to just run down the second ramp to finish the level, but if you go backwards, you'll see that the first ramp also lowered.
Walk down the ramp and up to the tower and the doors will open revealing a teleport. Make your way to the cupcake health booster, eat it, and the legendary Treasure will appear.
The Legendary Treasure for Skylanders Chapter 3, Sky Schooner Docks s a pair of Wild Runners.
I discovered a neat little trick for amassing lots of gold. I have the Pirate Seas Adventure pack and it comes with a special treasure chest. If you put it on the portal then while you do a level you can find the extra treasure chest. The thing is, you can keep the chest on the portal and each time you talk to someone in the main area where the core of light is you can actually get the 300 coins from the treasure chest over and over again because it resets each time you talk to another person. I was able to level up a bunch of characters. A very cool trick.
The Pirate Seas Adventure pack is on my son's birthday list. But that's in April. I may have to bump that up on the priority list.
Thanks for the tip, Drew.
The Legendary treasure in Skylanders Chapter 4, Stormy Stronghold is near the end of the chapter, at the last lightning pylon, just before you go down to the stronghold.
When near that last pylon, more your character to the bottom of the screen into the small area filled with barrels. Shoot all those barrels and a teleport will appear.
The Chapter 4 Legendary Treasure is the "Ancient Carillon"
After a few days of playing Skylanders, it has become pretty clear that more characters are needed, and fast, to get into some areas of even the early chapters.
So we headed to Target yesterday and picked up this Triple Character pack, which had Stealth Elf, Wrecking Ball, and Sonic Boom. Stealth Elf and Sonic Boom have helped us unlock a few areas in the first few chapters (Life and Air Elemental Characters).
The Legendary Treasure in Chapter two can be seen behind a locked gate right at the end of the Chapter, to the left of the cannon. There is no way in there once you've reached that point, and there is no turning back.
To get this Legendary Treasure, you must have a Life Element Skylander, like Stealth Elf. Unfortunately, a Life Skylander doesn't come with the Skylanders Starter Kit, so you have to buy one.
Once you do have a Life Element Skylander, simpy walk up to the edge of the cliff. At the correct spot, the grass looks different -- That and the floating island are only hints that something is there.
When a Life Skylander steps on that spot, a bridge will magically grow out of vines. From there you can make your way into that area with the Legendary Treasure.
The first level of Skylanders is designed as a tutorial and introduction to the Skylanders video game, but to get all three stars (i.e. full completion of the level) it can still be quite tricky.
The most difficult item to locate is the Legendary Treasure.
It is hidden in a house that you need to blow up with a cannon. Here are the
...Indeed, it was on the top of my five-year-old's Christmas list.
Skylanders Spyro's Adventure combines a kids game, with pricey toys, and a brilliant ad campaign. It's on your kid's Christmas list, so listen up.
This ign.com article is a good review of the game, and pretty well captures what it is all about from its identity as a video game and into the collectibles market.