The Contest of Champions
Balio and Sunder take you to an Arena, filled with people waiting for a Contest to start. You learn that the Contest is a fighting contest. After some arguing, Balio and Sunder let your team enter the fighting contest, figuring they can clean up by gambling on your performance. In return, they promise to let you go if you win. You are then made to pick a party member that Balio and Sunder hold captive as a hostage in their office, while you are able to roam around in the area to train and shop.
Get in a fair bit of training before entering the Contest - it can be quite tough. When you are ready, come back to the Arena, and follow the directions given to the Hall of Fire. Go to the contestants room next to the Hall of Fire and ask to enter.
The Hall of Fire vs. Team Patrio
In the Hall of Fire, you fight one-on-one against Team Patrio. Your team stand on top of platforms in a lake of fire, held up by Dodai. You can attack these Dodai (they appear as an enemy target), but if you attack your opponents Dodai, they will attack yours back. It is up to you which strategy will be most effective.
In the Hall of Fire, if you die, you will be replaced with the next character in your party. Your opponent will fight with what health he has left.
If you train to level nineteen or twenty, it should be possible to beat all three with Ryu.
Claw
Claw has Double Blow attack and Blind.
Cawer
Cawer mostly uses magic, and will usually use Protect and Speed.
Patrio
Patrio uses Lucky Strike attacks.
Null Magic Hall vs. Team Emitai
Emitai will approach you before you start the battle begging you to intentionally lose so he can save his daughter. A likely story.
In the Null Magic Hall, every character in the battle is silenced. Emitai turns his two 'boys' into Golem characters.
The two Golems will use either a normal attack or a stronger Spirit Blast attack.
The best tactic in this fight is to focus your attacks on Emitai. When you defeat him, the two Golems will get confused and attack one another.
Upon defeating Emitai, you learn that the sick daughter thing was just a facade. You quickly get over it, and on to the final battle.
Hall of Kings vs. Garr
Garr can do Lucky Strike and Flame. It is extremely difficult to beat Garr, and you will probably lose this fight. Either way, the storyline is the same. Garr will then tell you to go to Angel Town.
Leave the contest and rest, then save.
Maekyss Bridge
There are two fights coming up. If you haven't saved, it is a good idea to do so at this opportunity.
Walk across the bridge, and you will be confronted by Balio and Sunder along with a small army of goons. After some dialogue, you will have to fight with three of Balio and Sunder's goons - three "Bully" characters.
After this, Garr will join you, and you can then fight against:
Stallion
Balio and Sunder combine to become a stallion form. They can perform "Jolt" and "Utmost Attack". He's quite difficult.
Make sure you go down to the house under the bridge and collect the 400 zenny from the cabinet, and, more importantly, the Frost dragon gene.
Wyndia
Enter the castle by talking to the guard on the door as Nina. The scene will cut to a banquet with the King and Queen of Wyndia, then you will wake up in control of Nina.
Go downstairs and talk to the maid on the left with the broken plates. She explains that she tripped and dropped the broken plates by something small but a bit bigger than a rat. Honey!?
Honey appears but runs off to the left of the screen. You need to go to the right, and then go down the stairs. You enter the servant's area - go down the left staircase.
You are now in the kitchens. Poke around and collect the items in here, but then go down the stairs.
You enter a cellar filled with barrels of alcohol. Go down the planks of wood, and you will find Honey at the end of the two 'aisles', between the area with the mouse and the area with the guard. Use your shoulder button(s) to rotate the camera.
After you have finished this, go back up to your room and out on to the balcony. A cutscene will take place, and Nina ends up in the camp with the party members.
Checkpoint
Proceed to the Checkpoint in East Wyndia. An amusing altercation takes place, but you then proceed to the Rhapala Region.