Gaia's Navel is the path that leads the player to Dwarf Village.
In Pandora, go to the western portion of the town and head left. Just follow the path until you get to a split in the road; go left here into Kippo Village. In the shop, buy the boy a Chain Vest and if you took some serious damage, sleep at the inn for 10 GP.
The next area is absolutely annoying. If you've got a really bad sense of direction, sit down and listen up: go left and then north until you reach a signpost. From there, go down the stair set. From here, circle around this damn place while squashing many Lullabuds and Buzz Bees, and you will eventually end up at a waterfall. There are two entrances situated here; if you want to stop by at Neko's and stock up on items, go into the right one, and otherwise take the left entrance.
In this dungeon, you'll find Blats, Kid Goblins and Green Drops. Blats have this ultra-annoying attack ("Balloon") that stops you and leaves you vulnerable for a brief moment. Try to splat them before they get a chance to cast this spell. Kid Goblins in this area are usually asleep, but walking near them wakes them up. Green Drops have the ability to multiply; great for leveling up, annoying if you get trapped in a corner.
Cross the first screens, until you descend down some stairs. In the next screen, a large room with lava, walk all the way to the left and go into a small room. Three Kid Goblins are asleep here. Bust them up, and then aim any weapon on the skull at the end; this will make the previous room passable. This means, of course, you must go through the now-accessible passage. Beware for the two Kid Goblins that guard the end of it. In this room, first go left into a small room with two Kid Goblins... and a chest! Slay the two goblins and claim the Magic Rope, an important item that lets you return to the entrance of any dungeon you entered. No need to use it now, though, so go back to the previous room and go south.
Here, go south again (to the right is a dead-end with a Green Drop). Follow the path and you'll eventually reach a set of stairs. Descend and go all the way to the right. Ascend here, and then defeat the Kid Goblin that sleeps in front of another skull-switch. Hit the switch; it seems to be connected with the platform over there that falls down. Go back one area (the other paths are blocked for the time being) and climb the ladder, leading to the entrance to the Dwarf Village!