When you enter the town, Cloud will see that Nibelhiem has seemingly been rebuilt, despite that he remembers it being burnt down. Firstly go into the inn, and enter the room at the back on the first floor. Talk to the black creature here to get a Luck Source. In the building to the right of the inn is an item shop, and another black creature with an Elixer in the furnace room. Go to Tifa’s house, and get the Turbo Ether off the creature at the back of the room on the first floor. You can play on the piano in Tifa’s room if you like, and read the letter on Tifa’s desk as well. In the building to the right of Tifa’s house on the top floor you can get a Luck Source from the creatures in the attic.
When you have got all the items, go into the mansion. You can get Vincent now if you want (See Side Quests). There is an Enemy Launcher in the chest near the room with the safe in, and if you go through the northern door, under the stairs there is a Twin Viper in the room to the right and up. Go to the right of the top of the stairs to get a Magic Source in the chest in the room to the north. Eventually make your way down to the basement. Go towards the back room and you’ll meet Sephiroth again. He will talk of the Reunion and when he leaves, he will throw the Destruct materia at you. Pick it up and leave the mansion. Go north to leave to the world map.