I cant find were to dig on draggontooth island, it keeps on asking me to walk were there are trees which screws up the whole thing.

I think you have to read the map. As I remember, it starts at a rock and you have to walk the number of spaces on the ground in the direction that the map tells you to

yeah, I finally got it by walking in a grid pattern, and digging in each square.

you could of left clicked a choose follow map your charecter would have done it automatically