Brain Lord/Town of Arcs

After the flash back, you wake up in front of the bartender inside an inn. Apparently you had been day dreaming. As your surroundings come back to you, you sit and eavesdrop on the four adventurers nearby. You'll have to listen in for now, as you have no control over your character.

The other people standing around are out of work, so the guy in purple, Rein, looks at the paper on the wall. It says they're looking for people to go to the Tower of Light. Some of the others will start talking to you, then tell you to check out that piece of paper on the wall. When you're finished reading it, you'll gain control of your character.

The first thing you should do is head to the left and talk to the woman there to save your game. You don't have to sleep to save, just say no and she'll save it for free. You can also get a drink from the bartender. It's apparently rather strong.
 * Save your game

Pest control
When you are done with the inn, head outside. Walk around to the left or right and above the inn is a house almost as large. Go inside and walk to the far right side; ignore the old man near the entrance. The old woman by the stairs has mice in her attic that she wants you to get rid of. After speaking with her, head upstairs and kill the mice.

In the attic, mice will be running around frantically. They will not attack you. If you get near them, they will run away, so you'll have to trap them against a wall or in a corner. Each one gives 100 gold, for a total of 1000. When they're gone, grab the contents of the chests and head back outside of the building.

Equip the Buckler that you acquired and read the Scrap of Paper. The note will give you some vague information on the Tower of Light.

Shopping
There isn't much else you can do, so go and talk to Marlon the Blacksmith in the Southwest corner of Arcs.

After that, you might want to check out the Tool shop: go there next. Don't buy anything though: it's better to save money to buy jades and spells. Downstairs is the weapon shop, but it's currently out of stock.

To the left of the Tool shop and behind the Blacksmith's house is the Magic shop. Talk to the old woman across the table to purchase a spell.

Now you're set for battle. Exit and head toward the North side of Arcs. Talk to the guy guarding the entrance so you can be let out.