You must have the following locations open:
- Geo: Tome of Magic
- Polpota Harbor: Rusty Anchor
- Gato Grottoes: Flame
First, enter Geo and make your way to Kristie's Palace of Art (at the top of the map, continue up to the next area and then right). You will then be in The Bronze Auditorium. Here you will step in on Sotherbee and Kristies conversation.
Event begins
Enter Polpota Harbor. On the map, go to the left area and continue left until you reach Polpota Bay. Niccolo will be wandering the beach to your right. Talk to him. After the conversation you will be given the option to take or leave him. Take him to Kristie.
After the conversation, head to Gato Grottoes. Go left on the map and select "To the Waterfall". Head up, go all the way right three times, and you will be at the giant bird nest. Niccolo will grab some more herbs. Afterwards head back to Geo to talk to Kristie.
Follow the steps back the bird nest, but do not go back to Kristie yet. Instead, return to Polpota Harbor and you will find Niccolo on the beach once again. You shall automatically be taken back to Kristie's for a cut scene.