If you haven't been to Tule already, watch the pirates rush the town pub, screaming for 'grog!', and Faris will temporarily leave your party.
Tule is west of the Wind Shrine, and has a lot of fun things to do, such as the Beginners house, see the previous page in the walkthrough for a rundown on what you can get there.
To further the hilarity of the pirates, go and have a chat to them, they're (obviously) in the pub, and to get an even funnier scene go and talk to the dancer girl... the scene is just mind-boggling. Go and play the piano there, and laugh at your sprites pitiful attempts at playing scales. Upstairs in the pub is the pinnacle of Tule pub humour, though, involving a sleeping Faris...
You can go and upgrade your weapons and armours at their respective shops, raising the good question of how the hell Faris knows that you're there.
To continue the storyline, go up to the big house at the end of the village, where Lenna remembers that Zok lives. Since he built the canal, wouldn't he have a key? Enter the house for a cutscene. After the cutscene, you have the Key to the Torna Canal!
Make your way to the canal, use the key, and you're in the Canal.
It's pretty straightforward here, just continue down the canal until you get a cutscene, now for the Karlabos: