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The quest for Luther: I completed that one by battling navy ships until he walked onto my ship and it said quest completed.
Buy a new cutlass or pistol at the Blacksmith's shop. I know the one on Port Royal is one of the first shopkeepers if you enter from the side of the town furthest from the half-ship.
Your ship does incur damage when you battle, when you dock the repairs are subtracted from your bounty.
You probably can't choose full screen mode yet because we need to be able to X out of the game since we have no other way to quit.
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