The First District
Sora arrives in Traverse Town and is awakened by Pluto. This world is the main hub for people from all different worlds that were attacked by the Heartless. You will spend a lot of time in Traverse Town because of the Accessory Shop, the large building in the center of this First District. Go south of the aforementioned shop to find the Item Shop located next to the steps. Sell your Pretty Stone then target the fan on the ceiling and hit it to receive a Postcard .
Leave the Item Shop and take the Postcard to the funny looking Mailbox. Deliver it to receive a Cottage . Head up the steps past the Accessory Shop and look right to find some crates. Push the large one over to the shop and use it to reach the roof. Open the chest to find another Postcard , which can be mailed for a Mythril Shard . Enter the Accessory Shop and talk to Cid to gain some understanding of where you are. Jump atop the shelf to Cid’s left to find a chest containing a Mythril Shard . Note that there is also a Save Point in the shop.
The Second District
As you enter the Second District you’ll witness a man losing his Heart. Some Shadows appear and you’ll need to defeat them before progressing. To the right is a chest on an awning. You’ll need to jump from the nearby lantern to reach it and obtain the Postcard which can be mailed for a Mega-Potion . Head along this side of the district towards the large building at the opposite end. Jump across the gap and then over to the Gizmo Shop ledge. From here you can reach the chest with a Mega-Potion inside.
You can enter the Gizmo Shop and fight waves of Shadows for some decent experience and Munny. You want to enter the Dalmatians’ House afterwards to learn about Pongo and Perdita’s 99 missing Dalmatians. Exit through the house to the Alleyway and head to the far side to find a Potion within a chest. If you climb onto the balconies you can find another chest with another Potion at the end near the Dalmatians’ House. On the opposite end you’ll need to look over the balcony towards the chest on the ground to notice another chest on a ledge – it contains a Pretty Stone.
Head back to the Second District and enter the Hotel to trigger another scene with Donald and Goofy searching for something. Venture to the Third District via the alley that splits the Second District then return to Cid in the Accessory Shop. Save your game and leave the Shop to finally find someone.
BOSS - Leon
First off, this battle can be pretty tough being at a low level. Second, you are really not supposed to win the battle and the scene afterwards is the same regardless of whether you "win" or not. Leon hits pretty hard with a quick one-two cut, but it can be parried for 1 Tech Point and leaves Leon open for a combo. Leon also casts Fire, which should be dodged unless you are skillful enough to reflect it back at Leon. Performing this skillful maneuver stuns Leon for quite some time and allows you to get in some good damage. Waiting around for this moment requires a lot of patience but is the safest way to defeat Leon. Likewise, you can employ a hit and run tactic where you only swing twice then run to dodge Leon’s attacks but it can be risky. The best way to win is wait for Leon to jump towards you, then quickly move so you are behind him and unleash a 3-hit combo.
Take out the Leader
After the scenes talk to Yuffie then open the chest on the table for the Elixir . Check the pictures around the room then jump up and hit the clock above Leon’s head until it reads 7:00. A sound will indicate a chest spawning behind you on the seat, it contains a Mythril . Let Leon know when you’re ready and head out.
Soldiers claw like Shadows but deal more damage and have more HP. They can dash towards you to try for a high damage attack, but if you time it right you can hit their head for some Tech Points. Long combos work best against the Soldier as well as Aerial combos.
Head out to the Second District and get some practice against the Soldiers then go to the First District. Talk to Aerith outside the Accessory Shop to receive a Mega-Potion . Before heading out, it’s not a bad idea to pick up a Fire Ring or Protect Chain to raise your defense just a bit for the boss that awaits you. Head to the Third District when you’re set. You meet up with Donald and Goofy to fight off a large group of Soldiers. Once you defeat them the leader that Leon mentioned emerges.
BOSS - Guard Armor
The Guard Armor has multiple parts that can all deal damage. You’ll want to target the arms first since they have the fewest HP, though they have the least dangerous attack. They spin around from time to time and can knock you way back. While spinning, if you get a shot in on them you’ll stun the arms and they’ll fall lifeless for a few seconds so you can get additional damage! Next, take out the legs which can also detach and start stomping around dealing a little damage but mainly knocking you back. Attack them from behind while detached and they’ll go lifeless for a few seconds. While all of this is happening, you need to watch out for a Body Slam from the Body. This attack can deal a lot of damage and possibly kill you in a single hit if you are a little under leveled. Once the arms and legs have been defeated the Body isn’t much of a threat.
Traverse Town Aftermath
After the scene Aerith will give you 500 Munny . If you beat Leon earlier you’ll also receive an Elixir . Head towards the dining area next to the Item Shop to spot Trinity Jump #1 . Use it to reach a chest with a Postcard inside – it can be mailed for a Mega-Ether . Head towards the exit gates and look left for Trinity Jump #2 that results in a lot of Munny. From here go towards the Second District and jump over the short wall to the safe. You can unlock the safe now to receive a Postcard that can be mailed for a Mythril . Now go through the Second District to the Hotel then to the Red Room to find a chest with a Pretty Stone . Now, head through the Gizmo Shop in the Second District and use the ladder.
This takes you up to the upper level roofs. Cross the narrow path and jump to the large building across the gap. Move towards the hole straight ahead and look left for a chest containing a Mythril Shard . Go through the hole to reach a balcony in the Third District. Check the corners here with R1 to lock onto and examine a Postcard that can be mailed for an Elixir . Jump down and go behind the "Lady and the Tramp" statues to find Trinity Jump #3 which gives a Camping Set and lots of Munny.
Lastly, head to the door with a flame on it and cast Fire to reach the Mystical House. Jump across the stones and enter the Empty House via the hole in the left side. Here you’ll meet Merlin and the Fairy Godmother, but you’re really here for the Trinity Jump #4 which nets a lot of Munny and a Mega-Ether . From here you are left to equip the party and stock up on some Potions before leaving to the Gummi Ship; picking up Donald’s Morning Star and Goofy’s Smasher aren’t a bad idea either. You’ll also want to purchase at least 5 Potions before leaving. They won’t be used for healing, but for gaining access to new areas in the next world.
Gummi Ship Adventures
When you leave Traverse Town you’ll have the option of going to one of the two available worlds. Choose the top one (Battle LV 1) to get started. This first course doesn’t offer much in terms of difficulty. You’ll have to break through some rocks that block your path, but otherwise it’s a safe trip. Nothing even shoots back at you. Disembark when you arrive to reach Wonderland.