You need to get your sister a birthday present, which you can buy from the trader in the center of town (in the middle of the mini map, he is the lower of the 2 green objective markers). You can either perform good deeds to get money from your father or you can earn the money on your own, being evil.
There are a possible 6 coins, only 4 if you are good, 3 if you are bad. But if you do the bad deeds, you can still do some good deeds for extra coins, so do all the EVIL, and then do the G&E.
- Go straight from the cinematic with your father, ahead you will see a lamp post, go behind that house to find a man making out with some woman, talk to him.
- GOOD - do not take the bribe.
- EVIL - take the bribe (1 gold coin)
- Now, go to the center of town to the higher green dot, this is the cheating husband's wife.
- GOOD - tell her about her husband (1 good deed)
- G&E - after taking the bribe, rat him out (1 good deed)
- Now, go right of that house and take the path to the left of the building on the right, go down the hill to enter a cutscene.
- GOOD - don't move (1 good deed)
- EVIL - smash all the barrels (1 gold coin)
- G&E - after smashing the barrels be standing where you were supposed to be standing (1 good deed)
- Go back up the hill towards town, but turn right, there are two green dots, a bully and a kid.
- GOOD - beat up the bully (1 good deed)
- EVIL - beat the kid, give the bear to the bully (1 gold coin)
- G&E - after beating the kid up and giving the bear to the bully, beat up the bully (1 good dead)
- When you have the bear (Rosie) go find the little girl, use your mini-map, she moves between the center of town and the warehouses.
- GOOD - give her Rosie (1 good deed)
Now, if you performed any good deeds, talk to your father to receive 1 gold coin per good deed. He is on the far left of the mini-map.
When you have at least 3 gold coins and are ready to move on, talk to the trader in the center of town to buy the chocolates.
Now, your sister was the highest green objective marker, but she is now marked by the gold core quest objective marker, go to her to enter a cutscene and give her the chocolates.
After the cutscene, its a single linear path to the next cut scene, and the end of part 1.