After you free all the Dwarf's from the cocoons, there will be a cinematic where three huge spiders drop down. The first one is easy. Simply attack her normally or throw rocks from a safe spot to kill her. The second one is relatively easy. Pick up a Fire Rock upgrade and run to the nearest platform to a safe location. Throw the rocks at her until she is dead. The third one is the most difficult to kill. Get a Freeze Rock upgrade and run over to a platform. Toss a rock at her, then take out Sting if she is close to you, and the Walking Stick if she is far. Normal jump towards her with Sting and do a jump attack ( PlayStation2 press Square in mid-air) if she is close. If she is far, perform a far jump followed by a jump attack. If you can manage it, take Sting out as you are doing the far jump to do the most damage. Repeat the process until she is defeated. If you run low on health, drink a health potion or do a far jump from the platform you are on to the corner nearest to you with some mushrooms.