Go to Oakfield and visit the sculptor. Choose any town you would like to have the statue put up. When she tells you to do a pose, go to your list of Actions. Choose "Social", then select the lute. After finishing the pose, go to the town that will have that statue. If you chose Oakfield, simply walk out to Rookridge, then walk back out. When you get to the statue, it will as if you are playing and air guitar.