Wowow so I've been stuck for a while.
I killed the Gargoyles, then started exploring. I found the hydra and killed it, then went up to the forest where the dogs are and got destroyed. I explored more, found the butterfly and destroyed it after a few attempts of learning how to dodge. I explored through the catacombs and killed the boss down there, walked into the tomb of kings or whatever and got completely smashed. Then I kept trying to go down into the swamp through the Valley of Drakes entrance. I went all the way to the other side that apparently leads into the lower undead burg, and am met with the message: "Door opens from the other side."
It was at this point I realized something was wrong, and then I looked through the guidebook and found that after you kill the gargoyles you can open the other door on the opposite end of the bridge from the hellkite dragon to get down to the next part of the burg.
FFFFFFFFFUUUUUUUUUU
What have I missed by not going in there?