In order to guess the gnome's name, the player must first identify the gnome from the corresponding fairy tale, then alter the name according to the note found in the witch's house ("Sometimes it is wise to think backwards") - but not simply spell it backwards but in backwards alphabet (a=z, b=y, etc.), so the correct answer is neither Rumplestiltskin nor Nikstlitselpmut, but Ifnkovhgroghprm. Since the puzzle proved to be very difficult for the players, it was made easier in the remake King's Quest I: Quest for the Crown (1990).
Two of the foes Graham encounters - the dragon and the giant - can be killed, but the game awards more points for dealing with them non-violently.
Some of the game characters and items are based on 'Grimm's Fairy Tales' and other children books, among them: the magic beans and giant from 'Jack and the Beanstalk'; the magic mushroom from 'Alice in Wonderland'; the gnome Rumpelstiltskin; the witch and the gingerbread house from 'Hansel and Gretel'; the invisibility ring from 'The Hobbit' and 'Lord of the Rings'.
One alternative way to deal with the giant is to kill him by using sling and pebbles - an obvious reference to the Bible story about David and Goliath.