Get to the end of Pirate Ship part C. Knothead will be in the middle of two ducks. When you defeat Buzz, save the game and quit. Go to "Load Game" and select your saved game. Go to the right once and Knothead will be unlocked. Note: This requires a memory card.
Super Peck
Hold Square until it has maximum power on the bottom left corner of the screen, then release.
Spear Peck
To do a Spear Peck, jump onto a ledge and Woody will do a flip. When in mid-air quickly press Square. If done correctly, his beak will get stuck but he will pull it back out.
Dancing Woody
Find some money and go to the game room in the level square (where you start off). Go where the slot machine is located. Get all three Buzz and after you lose some lives allow the game to idle. Woody will do a weird dance with a dumb expression on his face.
Move While Pecking
While pecking up a wooden wall, press Left or Right and you can move in that direction.
Flip In Air
Hold X for about one second and Woody will do a flip in the air.
Do Not Get Electrocuted
Whenever you are in a level where it goes dark and lightning strikes you, it can be avoided by finding a tall pole with a spear at the top. When it goes dark, stand directly next to it and you will not get shocked.
Pirate Ship: Get Across Hole
In part B, reach the area where you have to jump to the other side where there is a hole. There is a wooden wall on the other side. To get over there, jump for the wooden wall then very quickly press Square to peck up the wall. If done correctly, Woody will peck up the wall and when he reaches the top, he will do a backflip, allowing you to continue the level.
Spear Peck Combo
If there is more than one duck, do the Spear Peck move and when Woody goes back in the air, press Square repeatedly until the ducks are defeated.