This chapter mostly serves as an opportunity to get to know the other members of your party and their personalities a little better. You can look around the tavern, and speak to your fellow mercenaries, and other customers of the tavern. Speaking to Dagran while he is polishing his sword will reveal a large portion of the game's backstory. After, when he moves to the wall across the room, speak to him again to receive 2000 G. You can use this in the room through the door next to Dagran (the Merchant's Room) to buy new equipment and weapons. Right now, there's nothing much of interest, but she'll offer more weapons and other services as you progress through the game. Use the save point on the upper floor to save your game, and leave the tavern when you're ready for your first glimpse of the vast Lazulis City.
In terms of weapons, Killer's edge, the most expensive should be bought first. You should get many more once you have more cash after a lot more battles to come. Also, to save yourself guess work, you can go to Equipment menu and choose auto-equip to let the game choose for you. Use it if you have too many weapons and armour to choose from. Make sure you sell the remaining ones if any of your characters are not using it.