There is a variety of things to do. (Not giving too much away here, just how to deal with the issues you are having).
First you need to drain some water, to allow the boat to progress to the right. See spoiler for how.
You have 3 explosive barrels. Drag one to the bottom of the ramp to the right, one near the pile of rocks, and one near the grate. Then drag the right-most barrel up the ramp until it ignites from the heat and push it back down the ramp (just let go and it will roll into position, causing a chain explosion.)
When you get the boat to the other shore, there will be another obvious problem you need to solve. See spoiler for how.
As for Spanky, you need the parrot first. Find the crackers, go get the parrot, and then visit Spanky. wave the bone in front of Spanky, and the parrot will pick up his bark. Then take the parrot to the hermit (you will know when to do this, because you need to distract the hermit).