It is a small, high-pitched flute which is similar to a piccolo - you usually see one used in military bands to accompany drums.
fife is in Scotland a few miles up from Edinburgh. Dunfermline is the main cit of fife. fife borders Perth and tayside.
Oliver - this was revealed in the episode where Otis Campbell is recognized as the descendant of Nathaniel Tibbs - a Revolutionary War hero. Actually his middle name is a bit of a mystery. It is...
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I think he named it Lulu Mae.