At the beginning of the game, the Weapon and Armor Shop is locked, so there's nothing to buy here aside from Items. However, there are plenty of Items to find. Check all the pots and other obvious hiding areas in towns to find lots of nice Treasure. The secret room in the inn can be opened by using the crossed swords on the wall. Enter the water at the north end of town and walk through the waterfall to the southeast corner to find some Items hidden there. Finally, walk through the trees near the old lady on the west side of town to find a large grass area with a few more Items.
When you return here as a Paladin, go to the inn to trigger a fight with a pair of Guards. After defeating them, you'll fight Yang, though this is a plot battle and you just need to survive for a time. Afterwards, Yang will join the party and give you the Baron Key, which unlocks the Weapon and Armor Shop as well as the Waterway to Baron. Upgrade Yang's gear before moving on, and don't miss the Treasures in the Shop (walk through the wall near the southeast table) and the Waterway entrance (through the east wall). You can also pick up Thunder Rods for Palom and Tellah if you want to use them as items (they offer the same Wisdom bonus as Flame Rods). A Bolt Claw and an Ice Claw will let you exploit the most weaknesses in the Waterway.
When you return here as a Paladin, go to the inn to trigger a fight with a pair of Guards. After defeating them, you'll fight Yang, though this is a plot battle and you just need to survive for a time. Afterwards, Yang will join the party and give you the Baron Key, which unlocks the Weapon and Armor Shop as well as the Waterway to Baron. Upgrade Yang's gear before moving on, and don't miss the Treasures in the Shop (walk through the wall near the southeast table) and the Waterway entrance (through the east wall). You can also pick up Thunder Rods for Palom and Tellah if you want to use them as items (they offer the same Wisdom bonus as Flame Rods). A Bolt Claw and an Ice Claw will let you exploit the most weaknesses in the Waterway.