To finish the Undead Village you must raise the Totems. You can't impress the village with any tricks you normally use. You must place a village center next to each Totem. To do so you must move the village center repeatedly to the Totems by places them then picking it up and so on until you reach the Totems. To raise them you have to interact with it and pull them up. They will lower every time you let go of them. In order to raise both Totems at once (which you need to do!!) you must have your creature lift one at the same time as you do.