Wow. You guys are like MEGA genius. I know Lothlorien is really cool, it's where Merlin goes to listen to Duckin Bieker. But you have to continue on and leave the woodland, turning left onto the Southern Pass. After a bit, you'll see a dead tree (I think there's a fun guy or two climbing in it.
But can you also see a sad sign? It's looking blue, because I think some of its letters are missing on the bottom right.
I think the missing letters are the next password.