Yaupon Village
Written by MSG Commander
To get to Yaupon Village, go south from Granum Mountain and through the woods.
When you enter the village, Paunch comes in and tells Iris that he's done for the day and he can't give you a lift on his ferry. But, he will take you anywhere you want to go tomorrow. After the scene ends, look for the Inn in the northeast corner of town.
At the Inn, Iris reveals that she's been interacting with the humans in this area for about 90 years. Minerva is concerned that during all that time, someone may have noticed that Iris never ages.
At the table next to you, there's a Young Swordsman who's apparently just completed a job for the local guild or some such. As it turns out, the Young Swordsman is planning on going to a lone island tomorrow... Could it be the same island your party is heading for? After a little while the Innkeeper tells you your rooms are ready.
Trust Levels / Free Time
While you're at the Inn, the game introduces something called Free Time. Free Time allows you to talk to each girl in the party and try to raise their Trust Level. (You can unlock different ending scenes by raising different girl's Trust Levels to 100 - for more details see Trust Levels and Special Endings.)
Before you go to bed, talk to Minerva and Iris to raise their Trust Levels.
For Minerva, choose "Then how about that one?"
For Iris, choose "That's an interesting shape."
When you're done, head for the stairs to the second floor.
While you're sleeping, Monsters enter the village. Izayoi and the Young Swordsman rush to battle. The Young Swordsman goes running off after one monster, and Minerva and Iris show up to help Izayoi fight the others.
Battle

Goblin, Blue Bi-Nuclei
5EXP/44SP/144Gold
This is another easy battle, but it's one that you have to fight in order for the story to progress.
After the battle, the Young Swordsman spies Izayoi and the girls fighting the monsters together. He introduces himself as Keith Glory, a guild mercenary.
Izayoi mentions that the monsters were lured to the village by crystals (possibly like the one Keith was showing off in the Inn last night?)
Back at the Inn, Paunch shows up and says he's ready to go. After the dialogue, you can head to the dock and Paunch will take you to your next location.
But first, you should explore Yaupon Village.
Before You Leave
There's a secret passage on the second floor of the Inn that leads to treasure.

There's also a treasure behind the Weapons Shop, and another in the southeast corner of town, next to the packages and behind a tree. (It's really hard to see, but it's right next to a white package.)
There's also a Sprite hiding in the southeast corner of town. Next to the Sprite, you can unlock another side Quest.
When you're ready, go talk to Paunch, and he'll take you to the lone island.
The Black-Clad Man
As you're leaving the village, the game cuts to the Black-Clad Man.
He's standing in front of the Harmony Spirit and her Spirit Tree. Somehow, the Harmony Spirit knows the man's true identity - Odium. She also knows that he's not strong enough to hurt her tree.
Odium summons a bunch of monsters (with Adusk's help) and then he and Adusk leave the Harmony Spirit to fight off the monsters while they escape.
The game cuts back to your party, and Paunch has delivered you to the lone island. (Note that after the dialogue, Paunch is still standing on the coast, ready to take you back to Yaupon whenever you're ready.) Now, it's off to the Millennial Tree. To reach it, you'll have to go through Wyrt Cave.
Treasure
- Triple Arkstone - located in the secret passage on the second floor of the Inn.
- Crude Apron - located behind the Weapons Shop.
- Buster Ticket x2 - located in the southeast corner of town (next to the packages).
Quests
- 02 Best Fruit EVER - talk to Benedict in the south of town.
Sprite
- located in the south of town, directly below the Items Shop (and mostly hidden by a tree).