For the desires, that's not a bug, you are able to get all the desires from the gate as long as you have enough exp points!
Now to the forest.
Assuming that you are stuck at the very beginning of the forest, I've marked all the available paths here on the map red: 
The first way you would want to go is right, when you reach the new map go right again until you find a small hut in a tree.
Climb the ladder and talk to the old Lady there. Leave the hut und climb down again. Now interact with the Axe near the hut and once you have it, go back to the map I've showed you. Now you want to go north.
If you get stuck again, tell me!