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After returning to Potos, the villagers make comments about the mosters beginning to act up. Before returning to the Elder's house in the north-east, you may want to purchase supplies from the store (specifically the bandana, 50GP) if you can afford it (don't waste your money on Overalls, as Randi is already wearing a pair). Feel free to save in the inn (speak with the innkeeper, then say no to spending the night).

[edit] Boss Battle: Mantis Ant

Say hello to your first boss battle. While fighting the Mantis Ant, you should concentrate more on getting accustomed to using your sword since you will be revived by the armored knight every time you die.

Mantis Ant is very simple, but his attacks will keep you from continuously attacking (and maybe kill you too). If you are already at Level 4 when you fight him you should have no problem in blocking his stunning attack; at Level 2, things will be a little bit challenging. You can further enhance your defense if you equip the bandana to help block his Acid Breath. His only attack that will hit you 100% of the time is Gem Missile Level 0. While you're not getting hit, just wait until he's strafing around and slash him with your sword when its power is at 100% for maximum damage. If your sword is at Level 2, simply use your charged up Level 1 attack to finish this fight quickly (it deals about 140% damage).

Item obtained: Sword Orb

[edit] To the Water Palace

After the battle with the Mantis Ant, you get exiled from Potos village, although you are given one last chance to purchase supplies. Head downstairs to open a treasure chest and purchase what you need from the store.

When you head outside, you are allowed to take a free trip to the Water Palace. You can take it if you want, or you can walk along the path and follow the signs to the Water Palace. You'll find a save point just south of where you land (head east, then south slightly and west to Neko's).

Head into the water palace and speak with Luka and Jema. She will describe your current task; find the eight temples, and seal the mana seeds with your sword. You will also receive a spear. The water palace also serves as a save point as well.

Luka will mention that you should head to Gaia's Navel for the Underground Palace. To reach this place, head south through the Kingdom of Pandora.