When you arrive in Dalaam, the first thing you want to do is make sure you have the Franklin Badge in your inventory. If not, call up Escargo Express and get it, it'll be very helpful for the upcoming boss battle. If you need to rest up, talk to Poo's master and he'll restore your HP and PP for free. The man with the phone-shaped hair will save your game. If you need to pick up some healing items, you can buy them from the restaurant.
Head to the southern cave that is being guarded by ninja rabbit statues. Use the Carrot Key next to them and they will vanish. Enter the cave and fight some enemies to gain levels. Do not venture too far and instead pop in and out of the cave entrance so you can keep fighting. Head back to Poo's master to heal when you need to. It is advised that you gain a few levels here, as the enemies are fairly tough.
When you are ready to move on, head through the door to the left and descend the ladder. Grab the Bracer of Kings from the present and equip it on Poo. The Bracer of Kings is the only arm item Poo can equip in the game. Head back to the entrance and climb the two ropes to the top. All the way to the left you will find a hole. Drop down to the next area and grab the Sudden Guts Pill from the present. The hole on the right takes you back to the first area and the hole in the middle takes you to the room to the left of the first area. Ignore them and take the hole all the way on the left side. This will lead you to a Rock Candy and another hole. Save this Rock Candy for the reusable items trick as it will increase your stats permanently!
Drop down the next hole. There is another hole nearby that leads to the Bracer of Kings that you already got, so ignore it and head to the west. You'll come upon the next Sanctuary boss, Thunder and Storm.
Enter Pink Cloud behind the shiny spot and record the sixth melody on Sound Stone! When you are ready to leave, drop down the hole and climb the ladder. Leave the cave to the right. You are now ready to head to Scaraba, but you have to head to Summers first.