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A lot of the enemies up there are actually ones that divide when physically hit but not killed. Magic will be preferred here, unless you somehow have a Dark Knight with a Dark Blade.
Go along the path for a bit and you'll find it to be blocked by some boulders. Unei will remove them. Let's continue south and west. There are two doorways here; go through the eastern one and along the path to find some Reflect Mail . Backtrack and go through the other door.
Here, go north and you'll find three doorways. From left to right, you'll get weapons, an Inn and item shop, and an armor shop. You'll want pretty much all you can get from the weapons and armor store, though be sure it actually improves upon what you've got. Good thing you got a lot of free Diamond gear earlier. Then go to the southeastern corner of the area and continue on.
Here, go south and east to find a fork. Go north to quickly reach another.
Go through each one to find sweet items: the Rune Bell for the western door.
You'll find Faerie Claws for the other one.
Backtrack to the four-way intersection between these two doors. Go south to a south/east fork. Go east and through the door to find a Chakra Band .
Go back to the south/east fork, then go south, west, and through the door to find a Black Belt Gi .
Backtrack one more time to the south/east fork, then go due north to the wall, then east and south to the next area. Continue along a fairly lengthy, linear path to reach a ship ... the Invincible !