Well, first of all, the idiots door is no problem. Rinkworks won't let you get into a situation where it's impossible to beat the game. It says so in the instructions. If you have the pick, you can forget about that idiot.

Secondly, if you had another key, you could get into a building somewhere in the village of boredom, and use a tool that you DO cuurently have in your posession, and bust something apart, and use what you find there to hang the blanket.

I trust I've been vague enough, and still given you the hint you needed. Truth to tell, the key you need, The Key of Opening, i don't remember where it is, so don't ask me.

-RiftTraveler