You only get to see this Flute once in the game, and it is here. You can use it six or so times, but it only does something in one room: the room with the tiles in the shape of a snake.
Ceaser's Hut Pizza
The Queen of the Nile sends you out of your way on a quest to find her pizza. Ceaser's Hut, eh? Hrrmm...
Try Your Luck Sign
The Try Your Luck Sign makes its way back into the second game! Picking up the sign will randomly add or subtract a small-random number of lives.
Chapter 3 Weapons
The Sling Shot gives you a longer range than any weapon at this time.
If you find the secret passage on the map, you can enter a hut with a merchant that is willing to trade you a Bronze Dagger for your artifact axe(Tink's Axe). This weapon is stronger, and can be thrown faster.
The Psychic Shockwave is given to you by Merlin. It is a secondary weapon. I can be thrown faster than your Bronze Dagger, but it cannot be thrown further. You can use this to break the force field in the Pyramid.
Was Ceaser's Hut Pizza from Zoda's Revenge a fusion-cameo of both Ceaser's Pizza and Pizza Hut?