You wake from your dream in a prison cell at Granz Castle. After a Lengthy dialogue talk to the slave near the door, then talk to Amanda near the silver Mana Goddess. Save at the silver Mana Goddess, then talk to the slave near the door again and a battle should commence in the arena against the Jackal.
After you win go up north to exit. There will be another lengthy dialogue, then you will be pushed off the bridge by Dark Lord.