Summoning the Derelict Ship
After dealing with Gavlan, leave the building and continue forth to the next set of wooden houses. There's an enemy waiting in the first and second floors. Go upstairs and pull the lever there to make the ship move and dock. After that jump off the ledge nearby and collect Lifegem x2 and a Homeward Bone from the corpse.
Drop off another ledge and enter the house. Loot the Fire Arrow x10 from the corpse along the stairs quickly. There are two of those beasts in the lower floor so its up to you if you want to engage them or leave them. Continue to the lower ground and make sure to enter the house beside the tavern and go to the third floor. There's a switch here that you can pull to open the iron gate beside the tavern. This will serve as a convenient shortcut in case something unfortunate happens.
Boarding the Ghost Ship
There's also a house near near the ledge facing the docks that have two undead soldiers inside and lots of poison urns. Destroy them from a distance since poison in this game is a big deal. Open the chest to find an Estus Flask Shard. The corpse behind the large rurns contain a Flame Butterfly and Throwing Knives x7.
Take the stairs leading to the docks and you'll find a broken building with more of those long-limbed beasts. There's nothing there so you can just run past them. Loot a Human Effigy and Lifegem from the corpse near the shallow water and continue along the walkway.
The walkway is divided to two paths. One leads to the ship the other leads to an NPC, Carhillion. There are some enemies waiting to ambush you on the path leading to his position. He is the merchant for sorcerers and he will only talk to those with high enough INT.
Next, approach the boat carefully. Archers and swordsmen will appear and the best way to deal with them is lure the swordsmen away and get rid of them before taking care of the archers. Once done, go downstairs and go through the misty door to fight the boss.
Boss: Flexible Sentry
This boss as two sides; one side has clubs as weapons while the other has swords. The clubs are slower but can deal bleeding damage while the swords are faster and has wider range. Use the pole in the middle to separate yourself from the boss. Even with this limited space, you should be able to keep a safe distance from them, especially if you're using spells or miracles. Melee fighters can roll out towards the pole and it will stop the bosses combos most of the time. Just anticipate their movement and evade at the right time before their weapons connect.
You'll get the Flexible Sentry Soul after defeating it. Head to the next room and loot the chest to get a Pyromancy Flame and Fireball. Next, examine the compass to operate the ship and head to the next land.