My "Hero in the Dusk" (Quest 13) display thing shows that I have not found all of the equipment in the level. I found the Ten Gallon Hat, but I cannot find any other way to get equipment. What do I have to do to get the other piece of equipment?
To get the other piece of equipment, talk to Fred, who is the man running the store where you bought the hat. Usually you don't get anything interesting by pressing talk on a shopkeeper, but in this case he'll reward you with the War Hammer.
Obviously you're going to have to have already cleared the western town of the bandits, and told Fred it was safe to return before he will be in his shop.