Once you enter town, you’ll meet up with Arc and he’ll beg to join you. You might as well let him, the more the merrier.
Let’s go to the blue-roofed house in town. Use the wellspring within to heal, then leave. Go west of this house and through the trees to find a small puddle of water. On the other side, near the trees, you’ll be able to get a Staff and a Mythril Helm . You’ll also find out that the people of this town need a Mythril Ring or else they’ll be ghosts. We have the Mythril, just not the blacksmith.
Go east and through the hidden path in the trees to find another chest containing Zeus’s Wrath . Return to the main bit of town now.
Go inside the Inn and look around for sparklies to find a Potion , and do the same in the house to the north to find another one. Return to the Inn and speak with one of the ghosts to find Cid . He’ll ask you to help out here, and lends you the airship he possesses. Obviously he can’t fly it right now.
Leave town so we can claim our new airship and help break this curse!
Important: Oh, and for the curious, do not go into the cave at the north end of town . You will be easily defeated in one hit by the enemies within, and running never solves your problems, as they say. We’ll come back there eventually, though.