During Chapter 1, find the bird cage across the farm house near the water wheel. Open the cage to free the bird. When you reach the settlement built into a mountain in Chapter 4, locate a stairway leading down to a landing with a telescope on the rail. Use the telescope to look down and to the right to locate a lone bird sitting on a tree branch in the valley, near the rocks with flowers and bushes; watch the bird long enough and it will eventually be joined by the bird you freed back in the first chapter.