Head out of Kokiri Forest and enter Hyrule Field. Before you reach Hyrule Field you will recieve the Fairy Ocarina. Head to the Mid- North area of the field. (Look at the map in the bottom right.) Get there before sun down. Don't stop on the way. Rolling makes you go faster....

Head over the drawbridge and enter the Market. Talk to the Girl in the middle of the Market in the white dress. Then win the larger Bullet Bag at the target game. Head to the Castle (the enterance you didn't come through) and climb the vines on the right wall.

Go past the gate but then purposely get caught. You'll be back at the enterance. Go up the vines again but first talk to Malon. Then sneak past all the gaurds until you get to the area where there are two gaurds with walls to both left and right. The left wall has a climbable area on it. This should help you get past the guards. Now jump in the moat.

Get out at the corner and head left. You should see a fat man sleeping on the ground. Wait till morning and the egg you got will hatch. Use the chicken to wake up the fat man. Now push both the crates into the water. Climb the crates and jump to the waterfall. Crawl through the little hole there.

Sneak past all the guards here and you'll eventually reach Zelda. You'll figure out the rest of this area from here.