Eternal Arcadia/Lower City
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Vyse hands over the Valuan Passport for inspection, and you'll be given clearance to pass through The Grand Fortress, a hugely impressive structure that protects the only entrance to the Valuan capital. As the giant doorway swings open, you'll see the thick wall lined with cannons that repelled the entire Nasrean fleet for days at a time, during the war ten years ago.
Passing through the Grand Fortress, you'll see the segregated Valuan capital - Upper City on the left shore home to all the rich upper-class aristocracy, with everyone else relegated to poverty in Lower City on the left shore. Drachma tells Vyse to set down in Lower City.
[edit] Lower City
While Drachma's getting the Harpoon Cannon installed on The Little Jack, you've got some time to kill in Lower City. Probably the most depressing place in the game, the people are as dank and dirty as the houses they live in. They have some slightly improved equipment in the weapon merchant's shop, and you can stock up on health items if you need them.
There's also a chest under the merchant stores, containing "Sacres Crystal" x2.
Down at the far end of this part of the city, you'll find a young red-haired boy named Marco standing by a lift. He'll talk smack for a few minutes, then let you go onto the lift and progress down to the second part of Lower City. Head down the corridor and you'll find yourself outside the Inn. Speak to the woman at the front desk, and she'll give you a room - Drachma will pick up the bill when he arrives later.
When Drachma finally makes it back from the docks, he's none too pleased to find Vyse complaining about the noise of the Little Jack's engine in among plans for breaking the captured Air Pirates out of whatever Valuan prison they're being held in. Drachma has some bad news, though - Dyne and his crew will be executed in the Valuan Coliseum tomorrow morning. You've got a Swashbuckler choice here: "Try and break everyone out right now", "Sneak into the Coliseum" or "I don't know".
Just then, there's a noise from the roof. Vyse runs outside to catch the kid from earlier listening in - you'll be boosted up onto the roof to give chase to the fleeing eavesdropper.
You'll see a couple of arrows appear on each rooftop as you jump across. If you take the same path as the wannabe spy does, you'll catch up with him just as he reaches a manhole cover leading to the Lower City sewers. It turns out it's Marco, that bratty little kid from near the lift earlier.
After questioning Marco for a bit, you'll learn that the sewers lead into a network of underground catacombs that could take you directly under the Coliseum - you could break in there and free your friends and family before they're executed tomorrow. With that plan, Vyse and company head back to the inn to get a good night's rest before the morning's rescue operation.
[edit] Catacombs
When you wake up, take the stairs above the lift and follow the path around to the manhole cover you caught Marco at the night before. Head down by pressing 
, and you'll find yourself on a narrow path beside what looks like a bright green river - very sanitary.
Follow the footpath to the end, and go down the ladder. Along the corridor, there's a small side path to the left that will take you to a couple of chest containing a Pyri Box and Sacri Crystal x3. Back on the main route, keep following the corridor and you'll come to another fork. Straight ahead is another room with some chests, with Heavy Armor and an Assassin Blade inside. The left-hand fork will take you across a broken pathway to a large square room with a Save Point in it. To the left of that are a set of stairs that lead you up to...
Boss: Bliegock
Bliegock is a hulking white blob with a penchant for poisoning your party. He's aligned to the Green Moon, so use Red weapons and magic against him.
Your Spirit Points are best used for either Vyse's Cutlass Fury or Drachma's Tackle - use Aika to Focus and heal party members with items when needed. If you've got any Magic Boxes those are worthwhile as well.
Bliegock's big moves are Poisonous Bile, which can poison your entire party, and Frozen Breath, a devastating ice move.
With Bliegock defeated, it's a good idea to head back and save your game again - if you're running low on items you might even want to go all the way back to Lower City and stock up again. Once you're ready, head up the ladder at the back of Bliegock's room to the Coliseum.
[edit] Coliseum
As Dyne is lead to the executioner's block, proceedings are interrupted by Vyse's team pushing guards out of the way to free the Air Pirates. With the prisoners escaping to the Catacombs, the Valuan executioner steps forward - he's determined that he'll kill some Air Pirates today.
Boss: Carcer
Unlike previous bosses, Carcer isn't alone for this fight - he's got two Venificus mages helping him out. Not only will they attack you, but they're able to heal and boost Carcer, which makes them pretty dangerous to ignore in the long run.
You're best to focus your efforts on one Mage at a time before taking on Carcer; use Aika to Focus or heal while Vyse and Drachma attack, and use S. Moves where possible - you should hopefully have taught Drachma the Tackle move by now. With the two mages out of the way, a similar plan of attack is your best bet with Carcer.
Carcer's special move is Tackle, which is a devastating straight-line attack that can wipe out more than one party member if you're not keeping your HP topped up.
With Carcer out for the count, you'll find yourself back in the Catacombs where you defeated Bliegock. Head straight down the stairs to the Save Point and you'll see Marco standing beside a hidden door - he saw your performance in the Coliseum and has come to help you out. He's led your dad's crew through to a secret part of the Catacombs, so follow them through to the hidden room.
