Change scenery items:
To change a scenery item, such as trees and flowers, walk up to it and press Select.

Change clothes:
To change what the people are wearing, walk up to them and press Select.

Change vehicle colors:
To change the color of a vehicle, such as a car or a helicopter, walk up to it and press Select.

Walk on water:
In the Knight Island level, after you defeat the knight at a joust you will give the flag back to the other castle. They will turn on you and you will have to shoot their cannons. You can now walk on the water.