. . .the Barracuda does leave from the island north of Silver Cove and go to the south island. However, the Cerulean Skies does leave from Silver Cove itself and go to the north island. I think I went that way because I assumed (that word again!) that the instructor was somewhere near the castle. And, ass that I was, I had to fly (much safer than water walking past the sea monsters!) to get to the island where he actually was.
P. S. Yes, I had v1.0, but (regrettably) gave it to my sister when I got the 3DO/Ubisoft bundle. "Regrettably," because she had her house burglarized a few years later, and the thieves took all her game CD's(!) I don't know what version the bundle is.
P. P. S. I also think that the NWC Headquarters is a sly revenge of the game developers for JVC's and Trip Hawkins' "selling out." Else why the two goblins?