You talk to the guy in the East room, do the boss battle in the West room and get the wand.
Then you go back to the East room, talk to the guy again and he gives you a book.
You then go north to the adjacent room, and double-click on your wand. It opens a rift. Go in the rift, do stuff in it, then come back.
Go talk to the dude again, then click on the rift and choose "close rift".
Then go back to the West room, look in your minimap and you'll see a blue orb. This is the room where you need to open the other rift. Go to that room (I forget if it's the west room or one adjacent to it, but it's on the west side) and double-click on the wand again. Rift opens. SAVE GAME. Step in the rift.
HTH