You'll arrive in a town that was recently ravaged by the soldiers from Castle Argus, taking away all of the men of the town.
First let's collect some items. Go to the northwestern corner of town and examine the base of the lone tree to find a Lamia Scale .
Go south to a house, then west to the crates. Examine one to find a Great Bow . Then go another house south (not the blue-roofed house!) and you'll find some Bacchus's Cider , which causes the very powerful Haste status.
Now head back to the eastern half of town. You'll find an Ice Staff if you zoom in close enough. Go to the northern portion of town and into the open house.
Go to the basement to reach three chests: a Kenpo Gi , a Serpent Sword , and some Sonic Knuckles .
There is not much left to do here. Time to go.