You have to go to Winnipeg. The last game target is located in the spiderweb to the northeast so visit it and defeat the last target to get a pair of Barbarian Gloves. Loot the chest across the water to the north as well. Ignore the cave for now since you don't have any way of breaking down the glowing rock.
Head east and enter Winnipeg. Once there, you can buy some new strap-ons from the shop. Talk to the Duke next. He will then have you take out some Dire Bears in the northeast part of the town.
Shoot them first to stun them then hit them to ensure that you'll get first strike. Kyle is a great ally here since his Rain of Arrows can deal heavy damage to every target as long as you got the key presses right. After defeating the bears, return to the Earl. After that, he'll have you return to the prince. He will be added to your friends list too.
After talking to the prince, he'll send you to Banff to kill the bishop. Once you're in Banff, head to the chapel and destroy the vase to the west. Step on the switch here to open the room to the right. Loot the items there and save your game. Attack the bishop to engage him in battle.
Once the bishop has fallen, you'll have the choice to either finish him off or take the dire pig testicles. Take the dire pig testicles and you'll have the bishop as your new friend. Return to Ottawa once more.
After reporting to the prince, he will become your friend. The princess will hand over a letter which you need to deliver to the Duke of Vancouver.
Travel east and head to the Duke's estate. Go to the northwest and smash the wall. Loot the chest and talk to the Duke. He will tell you to visit the monks living in the southeast of Vancouver, across the river. He'll also become your friend.
You'll find Terrance and Philip in the cabin. To convince them, hit them with your magic (Dragonshout, Cup-a-spell and Sneaky Squeaker) Follow their instructions to learn Nagasaki.
Now head to the Catacombs and destroy the obstacle to proceed. You now have to take on several dire animals blocking the path. Make sure you land the first strike. After taking out the animals, loot the chest in the corner and free the minister. He will translate the document and the quest will be complete. The minister and princess will be added to your friends list as well.
You can now return back to America. Make sure to sell your junk here and exchange your cash back to american dollars. After crossing the border, head south four times to reach your town.
(This quest is complete, refer to the Recruit the Girls main quest for the continuation)