The village is found on the northernmost continent. You can pay to draw Ultima, unless you have money to burn, which you should, don’t bother. You can get enough of these powerful spells on the Islands Closest to Heaven and Hell. Take the elevator and find your way to the westernmost house. Examine the statue, talk to its sculptor, and leave and head eastward to the house of the village elder. There is a moomba in front of the door. After talking to him, return to the sculptor and agree to help him. Now here is your mission: seek out five stones around the village. When Squall is near a stone, he’ll suddenly say, “HUH?” So examine these areas with care. After you find a stone, return it to the sculptor for your next assignment.
The BLUE stone is located in the large blue rock in the statue room. The WIND stone is in the big rock pile in the first screen of the village, next to the hotel. The LIFE stone is up the tree that is outside the elder’s house. The SHADOW stone is in a shadow (surprise!) behind a pillar on the right side of the screen where you can draw Ultima. The WATER stone is in Artisan’s sink, his house is east of the statue building.
After you get all five stones, head to the chief’s house and you will be rewarded with the Phoenix Pinion. This, when used in battle, will deliver a fair amount of fire damage to all opponents and raise all deceased party members. Once you use it once, if at any time all your characters die, it will summon the Phoenix and raise them all. I think they only work once, but I’m not sure. Pretty cool, eh? You can also get these from refining cards into items, you figure out which one. Once you have recieved your reward, talk to everyone in town again, making sure to talk to the attendant, artisan and elder again, respectively.
Return to FH and talk to the grease monkey to get a moomba doll. Return to Shumi Village and give the Moomba doll to the artisan. Speak to the Elder one more time to get the Status Guard. Complete the Shumi Village initiation to uncover a surprisingly long sub-plot.