To get the canoe you need to sail to the nearest port next to the creasent lake village.
then after that you need to get to the village.
when you are at the village, go to the top-right corner of the village.
this looks like an exit - but is isnt, go across the bridge and there will be lots of old people.
talk to the person behind the gadjee in the blue kimono type thing.
the canoe is the only way to get to mt gulg and rescue the fire crystal