Walk further to the left. If you have the old saw, it shouldn't be a problem to progress.
I don't have the old saw, where is that?
Outside the fortress... not sure how you missed it.
I guess I never moved close enough to it for the camera to focus on the area, and with the zoomed out view the only thing I noticed was the tree
It's one of the difficulties with the 3d approach to a game like this. The hotspot hint helps in some of these situations.