Once inside Lyton Cave, you'll notice this cave isn't overly big or long, just annoying since certain parts of the floor drop out on you. If you follow these instructions, you'll be just fine.
From the entrance, go north but stay to the right hand side when the path splits. Follow the path to the door and enter. You'll emerge in a clearing of sorts. Head southeast and follow the path around until you come to a small room to the north of the passage. Stick to the left side of the room along the wall to avoid falling through the floor. Grab the chest to receive a Wisdom Robe, which you should give to Nash. Exit this small room in the same way you entered to avoid the unstable floor, and then continue following the path west and follow it around to the southeast again. Take the stairs you find.
Upon emerging out on the next floor, go east and follow the path north, stopping to get the chest containing a Star Light in the first room off to the left of the path. Get that and then continue northward to find the next door.
You now find yourself in a room with a bright pink floor. Head due south from the entrance and keep going, grabbing the chest off to the east of the path for 2500 S, and then continue following the path which turns west. Follow the path and it turns north. Head north along the path and enter the door in the northwest to go to next floor.
You can't get lost heading south in this room, but you can fall back down to that pink-floored room if you aren't careful. Watch out for and avoid the subtle cracks in the floor and make your way to door in the southwestern part of the room.
As you emerge on this floor, there are two places to fall back down through the floor, so be careful as you make your way north. The next door will lead you to where you want to be, so enter it.
When you come out the last door, walk west and then north (don't worry, no more holes in the floor) and you'll come to the source of the god awful music. There are 4 holes in the wall with 2 rocks to plug them up (man...even I can't control these sick thoughts anymore, hehe ^^). Move the left rock to the left one spot and the right rock to the right one spot. This will solve Lyton's music issue. Now warp out of here and talk with the Elder again.
Once you make your way to the Elder's house, talk with him. He thanks you and tells you how to reveal the entrance to the Blue Dragon's Shrine, which is currentlt submerged under Lyton Lake.The solution? Two people who are in love must stand on the Lake's shore and sing a song which reflects the depth of thier love for each other. Walk north to Lyton Lake.