At the beginning of the game, after you have escaped your cell and have fought the first goblin, you'll see a table and a chair. In the corner are two bones. Take the left bone and USE it 10 times on the chair next to the table. Do not HIT the chair with the bone as the bone will break - double click on the bone when it's in your inventory and then click on chair.
If done correctly, you'll get some nice inventory items, including a meteor saber and full Ylside's Armor. You also get some inventory tokens, which can be used and/or activated with the right mouse button and then have to be used on the chicken icon to activate its function.
Thanks to Revolution reader Richard Eastwood!