How can I get the flute from Pan

Hint 1 of 4:

Pan might accept a musical trade, after a demonstration.

Hint 2 of 4:

Find the book by W. Shakespear in the library of the old house.

Hint 3 of 4:

Trade the book to the (bad) lute player.

Hint 4 of 4:

Trade the lute to Pan for the flute.