Where is Panchito's Guitar?
Gabriela's grave is at the left end of town, just past the save point. There's a friend of Gabriela's standing by her grave. There's no guitar there, but if you switch to the land of the dead, Gabriela will be right there.
If you speak to her, she will mention she gave it to a man who is now standing by the fountain. If you go and speak with him, he will say he returned the guitar to Panchito. If you go back, you'll find that Panchito has passed and the manager will now let you through.