I have gotten the celestial key and am trying to get the sword so I can kill the lizard eggs. I put the key on the sword and it just moves to the other pillar. Any particular place that I am suppose to put the celestial key?

Have you obtained the celestial sword? (if not, go back to 'land' level and use the key to get the sword - there will be a rock with a depression that matches the key).

Have you used the sword to destroy the eggs? (if not, go do that, then go back to the land and visit the old man again - he'll give you something you'll need).

Rest of spoiler sent by request.

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Gadzooks

"Never underestimate the power of stupid people in large groups"