Upon entering the town for the first time, Cecil will automatically stay at the inn (for free). You will be attacked in the night by three Soldiers and a General. Taking out all three Soldiers will cause the General to run, but you'll gain more experience and gil if you take out the General before the final Soldier. After the fight, Rydia will join the party.
As a caster, Rydia should be put in the back row. You may be tempted to give her a Short Bow, but its inaccuracy and need for arrows make it an inferior Weapon to using the Rod as an item (as opposed to attacking with it). Rydia will gain a few levels very quickly if you fight outside the town. Aside from the Short Bow, there's nothing of immediate use in the Shops here, though you can find an Ether1 in a pot near the Weapon Shop.
Before leaving, make sure to visit the northeastern building and find Rosa. If you fail to do so, Tellah will block your way in the Water Cavern.
Once you return with the Sand Ruby, use it on Rosa to trigger a cutscene. During this scene, Edward will fight a WaterHag. This Monster lasts longer than a typical WaterHag, but the fight shouldn't be too difficult, and it gives a wildly increased experience reward, which is nice. After that, Rosa joins the party.
As a caster, Rydia should be put in the back row. You may be tempted to give her a Short Bow, but its inaccuracy and need for arrows make it an inferior Weapon to using the Rod as an item (as opposed to attacking with it). Rydia will gain a few levels very quickly if you fight outside the town. Aside from the Short Bow, there's nothing of immediate use in the Shops here, though you can find an Ether1 in a pot near the Weapon Shop.
Before leaving, make sure to visit the northeastern building and find Rosa. If you fail to do so, Tellah will block your way in the Water Cavern.
Once you return with the Sand Ruby, use it on Rosa to trigger a cutscene. During this scene, Edward will fight a WaterHag. This Monster lasts longer than a typical WaterHag, but the fight shouldn't be too difficult, and it gives a wildly increased experience reward, which is nice. After that, Rosa joins the party.