The dungeon here kind of goes in a spiral, and it really doesn't matter if you go east or west.
There are a lot of Rare Metal monsters in here, which tend to run away from battle, but if you can kill them, each one gives 500 Gold.
There's also a decent number of Metal Animals, which don't give much Gold, but they do give 150 EXP each, so this is definitely a good place for grinding.
In fact, if you haven't recruited Claw yet, I highly recommend that you grind here until you have 10,000+ Gold (since his recruitment fee is 10,000).
When you reach the cave at the other end of the dungeon, it's the entrance to the Antarctic Plateau. Inside, you'll find the Light Spirit, Wind Spirit, Earth Spirit, and Fire Spirit.
The Fire Spirit will let you rest at the Inn, and the Earth Spirit will tell you that Water Spirits like sad stories.
Now, warp back to Desert Town. The Water Spirit is in the center, where the goddess statue is supposed to be.
Approach the Water Spirit and she'll ask for a sad story. In order to satisfy this part of the game, you need to change your formation a couple of times. First, put Bruce in the lead and talk to the Water Spirit. Follow that up with Temi and Linn, and the Water Spirit will give you a Spirit Tear!
Note: With the Water Spirit standing in for the goddess statue, the people have returned to Desert Town, and there's a new treasure available on the east side of town.
- Dragon Pearl - in the northwest corner
- Dragon Pearl - in the home east of the Inn