After falling off the train, you will see a young man named Rei. He will find you in the Cedar Woods with 2 Currs planning on eating you. Other than that, the dragon you controlled earlier is now naked and human. Rei will take you to his house whom he shares with Teepo who apparently met the same fate as you - abandoned in the woods without a strip of clothing. As they let you sleep, you will see a man & a woman talking to you. Afterwards you wake up and wander about. You may save your game here with the diary at the other side of the room. Wander around the house and check the dressers to find a Vitamin. Next, exit the house.
The best thing to do now is to get out of the Cedar Woods and walk south on the world map until you reach McNeil's Village. Rei & Teepo will come out from one of the houses after trying to steal some food. Mysteriously, Teepo calls you your own name despite you not telling him yet. After a while, they decide on getting you to help them find food and they steal some equipment from the shop. After that, with the trio finally formed, you can explore the village of McNeil. You can find some useful items by looking in the cupboards and in the garden to the right of the inn. Then head south to the farm. Speaking with the workers, you will learn that the inhabitants are going through a period of famine, due to a beast stealing their crops. Also search the hut near the wall that borders the McNeil manor, to find another Vitamin.
After exploring the farm south of the Village, it is advisable to return to the Cedar Woods. You can now fully explore the forest and defeat the enemies that are there to accumulate money and Experience Points, to increase the level of the characters. There are several items to collect scattered around the forest. You can also find a Worm on a shelf in the storage room under Rei's house previously inaccessible. Near Rei's house you will also find a friendly Eye Goo and Goblin who will give you some information about camping and the abilities of the enemies. You can also return to the village whenever you want, to buy better weapons and armor for the characters, as well as support items.
Road to Mt. Glaus
Another good place to experience is the road to Mt. Glaus, to the north. There are enemies in this area called Man Trap that will allow you to accumulate a lot of EXP points. Here you can also find other treasures, to discover some of which you will have to make Teepo kick the small round rocks that you will find on the ground. Finally, after fully exploring this area as well, head south of the Village, on Yraal Road.
This is where Rei and Teepo do their dishonest work, robbing passersby. Rei points to a tree above the road to hide, due west (upper right) of the tree is a bag of 40 zennys. Hide in the indicated point and soon a person will arrive along the road. As Teepo pushes you off onto the road, you realize it was Bunyan, a woodcutter who lives in the Cedar Woods you have probably met before. He gives a stern warning and leaves off. Rei then realizes there is no one in Bunyan's house. From then on, go back to the Cedar Woods and enter at the south of it, closest to town. It is also the entry closest to Bunyan's House.
Once you're in the forest, switch your leader to Rei. He will pick the lock in Bunyan's front door. Then enter the house. Once you gain control of Ryu again, go to the basement through a ladder at the northeastern part of the house. Check the cabinet and you'll find a Beef Jerky. Rei & Teepo will soon follow you. Before they decide to leave, Bunyan has come back. Rei tries to see what was going on and gets caught. Next is Teepo, then you. After some talk, Bunyan sends Rei to Mt. Glaus while you and Teepo are left to chop wood. This is easy. Simply chop the wood with Δ (default). If you press too fast, you will hit Teepo. If you press too slow and you will miss the log. Just simply press the Δ button when the log starts to fall down. Repeat this until Bunyan says stop. If you cut enough logs, Bunyan will let you go. After that, Teepo insists you follow after Rei to Mt. Glaus.