In the room where you need to use the Magic Rod to flame the two sconces, the chest appeared, but I have no key to advance to the miniboss to get the nightmare key. Compass is heard the first time you enter the room. It isn't heard again unless you quit the game.
Savefiles here.

Okay. Edited saveGame0\ s d8_smallkey_5 1 as 0, and it's fixed.

I seem to be stuck in the exact same position.  I believe this level allows you to use a small key on a door that I wasn't supposed to, maybe by going an around about way to getting to a certain part of the level that I wasn't  meant to by blowing up a wall or something. . But, I hate "cheating" Could you tell me if this is an known issue with the level?  Is editing the save game the only possible action?