There are a few things to do here. First of all, the Inn and Sanctum are available, but not the all-purpose shop. Don't worry, nothing's wrong with you - everyone here hates foreigners and won't talk to you. This does not stop you from breaking into their minds with Mind Read.
Go through the Inn (using it on the way if needs be) and go out the bottom (down the stairs). Switch Djinni around and use Growth on the vine to climb up and get the Spirit Gloves from the chest besides Moapa's house. Equip them on Sheba. When you're ready to roll, go back to the large-ish house at the top left of the village (don't go up to the next area yet). Approach the door and Moapa, and two of his Knights, will come out and ask you what you're doing. The reception won't be warm - walk back up to them, speak to Moapa, and use the Shaman's Rod.
They recognise it. You're supposed to get the Hover Jade for this, but they won't hand it over on the grounds that you're not from Contigo. Oh dear. So, to get it, follow Moapa to the first test.
The stone may bring back memories, unpleasant as they are, from Air's Rock. You know what to do - Sheba will approach the stone and use Whirlwind to clear out the canyon. Great. Now, you can take the test to earn the Hover Jade. Moapa will explain the rules - you've got to basically ditch some of your equipment in order to get through. This makes the battle at the summit a little harder - but don't ditch any weapons unless they're spare. If you do have spare weapons, then you can fill the chests with them, without sacrificing anything. Before you go forging up Trial Road, however, use the ladder to the left and get a Hard Nut from the chest. Use this on the person with the lowest Defence.
Now, walk onto whichever side you want to. The next section of the guide will go through both.