Look for the Ghost Ship on Navigation Map, [X:3882, Y:8775]
When you get to the area with 3 portals, go to the top portal and open the first door. Inside, pickup the blue key and release Kidd from the prison cell.
Now go back out to the area with 3 portals and go to the left one.
Continue down until you reach the room with the 3 stone platforms with daggers and a skull on them. Kidd is standing at the locked door, talk to him.
To the left of Kidd is a letter on the wall, read it. Now go back to the stone platforms and activate them all. Now you can go down into the next room.
Talk to Kidd and it will start a fight.
[Skeleton Guardian, LVL:128-130, HP:15500-16500, Elements: All]*4 +3 respawns.
Reward: 15% EXP Capsule*1, Undead Bird Feather*5