Go to the right, not north and go into the shops. Talk to the hyperactive kid in each store and buy weapons, they’re expensive but worth it. At the back of the weapon store, examine the door and then go to where the accessory shop is. Go behind it and the walkway will creak. Examine it to get the ‘Beat-up Useless Old Key’. Go back to the weapon store’s door and examine the door again.
When the option appears you can either lie and get some funny results about how nice the door is 🙂 or choose the bottom one to get the Curse Ring. You’ll need to reset if you chose the top option. When your done shopping, go to the right along the upper walkway and into the house here. You can buy accessories here. Now go north and Tifa will play with the cat. While doing this, she will overhear some people talking nearby. It turns out that Cloud washed up near here and is being cared for in the hospital. Tifa insists on staying with him.
You’ll then be back on the Highwind. Cait Sith will reveal that the Shinra are looking fro Huge Materia at Corel and Fort Condor. Cid will then be declared the new party leader, complete with his weird running style. Go to the Operations room to make a new party. Afterwards, land the Highwind and return to Mideel. Go into the house to the left of where the cat was. Pick up the Elixer from the bed. When you try to leave the old man will ask if you took it, answer however, you’ll still get to keep it. Return to the Highwind and go to North Corel.