Heh, I was wondering if you were merging creatures an plot ideas from the other two books at least for dinosaur thing. Looks a bit like a "Slok".
See No Weevil was a more 'non-linear' story that worked around a central town hub. Quite a bit takes place in the Town of Daventry for example.
Kingdom of Sorrow on the other hand was a more linear 'journey' akin to King's Quest 5. The town only really appears during one chapter, and he's there all but ten minutes, before he's heading off to the Old Woods. The rest of the story is traveling east into remote wilderness.
The only other possible place of 'civilization' might be the throne room of the woodfaeries where the faery king resides, and sends Graham on his quest to the east.
One would probably have to do a lot of changes though to make a proper adventure game out of the story, and flesh out more puzzles. Because of its very linear nature.
See No Weevil is quite a bit more whimsical in some ways, and probably had more of feel to the A Knight To Remember if anything. With lots of silly things going on, and potential for using the town and castle as central hubs for the puzzles.