Go into the huge L-shaped eastern building and you’ll find a guy within that knows how to find Fat Chocobos ! Speak with him and he’ll demonstrate by using a Gysahl Greens item where it smells of Chocobo. They store items in their obscenely-large bellies. In the first incarnation of this game where the inventory was limited, the Fat Chocobo was a necessity for storing away items you didn’t need right now. But in the DS version, you have plenty of inventory space making the Fat Chocobo more of a trophy or nostalgia factor. Use them if you wish though.
Also note the hidden passage on the eastern side of the room: it leads to a bunch of chests. Eleven to be precise! All filled with with Gysahl Greens !
Leave the building and go to the pub at the northern bit of town. Inside, watch the scene where Prince Alus gets bullied. Arc, usually the bullied, will stand up for him and proceed to let the party of four defeat the bullies and watch another scene.
Prince Alus will join the party. Now that that’s done, we should get to grabbing some free items.
Go to the southwestern portion of town and you’ll be able to get a Wind Spear from one guy, and the guy on the "island" in the center of town hands over a Dragon Mail . Nice.
Let’s continue on to southeastern Saronia.