Let's begin with some shopping. At the item shop, stock up on a few of the status items you lack, pretty much. Hi-Potions may or may not be a good idea. Do as your max HP dictates.
Weapon-wise has the usual complications. Your Warriors and Red Mages should use two Serpent Swords (50 Attack) or a Killer Bow with an Elemental Arrow (43 Attack), depending on your preference for or against dual-wielding. Your Black/White Mage will want one of the Elemental Staves as well, though it is not really a requirement. Their magic deals damage anyways, but you can run out of MP (after which Staves are your only option of attack).
Note that you can get a free Serpent Sword in this town, so if you're buying some of them, buy one less. Same goes for the Killer Bow , Fire Staff , and Ice Staff .
As for your armor, it's pretty easy. Buy a Flame Mail for Warriors, Red Mages,and Thieves. Buy a Headband and a Kenpo Gi for Monks (you should have one of the latter already). Buy a Mage Robe for the Black/White Mages. Of course, you may want it for the Red Mage as well: it does increase your magical stats by one.
As with the weapons, we'll be obtaining a Scholar Robe and a Mage Robe for free soon enough.
And, finally, magic. You should only need two Firas, three Blizzaras, three Thundaras, and three Curas to give everyone one of those. And you'll want that as well, given our next forced dungeon. Teleport isn't excessively useful unless you want to be lazy and leave a dungeon or battle. But you shouldn't want to avoid the ever-precious EXP. Blindna cures Darkness, the accuracy-lowering status, and has the same effect as an Eye Drop. Just purchase a lot of Eye Drops for the same cost as one Blindna, since items are available to everybody. As for Sight, it's completely unnecessary.
Now let's hunt for our freebies. You can go to the topmost area, on the southwest side, to find your KO-restoring wellspring. You can speak with the kid in the southwestern alcove after circling the Floating Continent with a Chocobo to receive a Gnomish Bread, and you can do that over and over again for lots of bread. And, finally, go to the Inn. Rest up if needed, then go to the well on its eastern side. Zoom in with the camera and go north to the white flower to find a sparkly, revealing a Serpent Sword .
That is about it. You can speak with the townspeople to learn various things. For example, you'll be told that their world exists entirely above the clouds. A certain tower we'll visit later is like a support for the world. Isn't that neat?
When you have finished your business leave town.