Grab the sun and head to the right. Use the two bottom platforms as they appear and jump to the right. Knock the big archer out quickly then deal with the smaller guys. Now we need to head up again. Use the platforms as they appear and hop up to one carrying sun (grab it). Continue up and get to the very top. Head up to the right for some sunstone and:
HIDDEN CHEST #35:
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While climbing the second set of moving platforms, head all the way to the top. Gather the sunstone and break the weak wall to the right of the sun stone to find this hidden chest.
Head to the left now and take out the enemies. You'll need to time these jumps unless you want to get zapped. Past that are more enemies and another set of moving platforms. Get past them and head up to another elevator.
Here kill the melee goblin and ride the conveyors (you can walk down the middle of them if you want). Follow three of them and then beat up an explosive gobling, then continue on and to the north. Watch out for the boomerang goblin here and ride the platform to the next area.
Next up is a couple of timing hazards. The first set will try to push you off and the second set will try to smush you. Just start running after the first piston fires and you'll be ok (they really aren't hard). Ride the next set of pistons up to continue.
Take out the archer first here then the explosive goblin. Head into the air beyond and beat up the goblin you find. Grab the relics and continue, pressing up against the wall against the wind. Soon you'll enter an area with wind from below and the camera will change. Head forward and guide Knack between the electric poles. You have really good control here, so go forward slowly and navigate the hazards (seriously, the control is really good!).
You'll find yourself in a room afterward. Fight up to the north and take out the two soldiers. Two more will come out: take out the left one as he comes down (he has a boomerang weapon) and mop up the other one. Next is two more sword guards and an explosive guard in the middle. Use a Shockwave here or just take out the explosive guy first and mop up the rest. A short scene will play.
Once you have control break the upper left wall for some sunstone and head right to more fans. Head right while floating on the air and you'll come to a walkway. Watch out for the boomerang goblin here and go knock him out. Head north to a conveyor and jump off to the right platform. Past the piston is another boomerang goblin. Take him out and jump on the elevator to proceed to the next part of the chapter.