Move down to the lower ground, follow the trees until you get to a canyon filled with trees. Move through these trees until you get to an area that you are able to enter, press X to enter the forest. If you run into a Cactuar I suggest that you stay and fight it, they give a large amount of Exp for this point in the game. Attack with Zidane and Cast Fira on it with Vivi, Quina can also learn the 1000 needles ability from them.
If you happen to encounter the friendly ladybug creature, you can tell that it is friendly because the music changes and it will ask you for ore. Don’t attack it, instead give in to it’s request and give it some ore. You will get a high amount of AP, each time you encounter a friendly creature give it the item that it requests. For more information on them check out the side quests section. Once you have made it through the forest, you should find yourself in an area with two paths and a sign in the middle.
Approach the sign and read it, the sign points in two directions, labeled as ‘Where there are owls’ and ‘Where there are no owls.’ The dwarf in Conde Petie told you that they live deep in the forest, so deep that the owls don’t go there. Head through the path that points towards ‘Where there are no owls.’ Notice that an owl flies away, and you seem to appear in the same area. Look at the sign again and follow the direction that points to ‘Where there are no owls.’ Always read the sign because it isn’t always the same path. Eventually you should see a black mage, follow the path that you saw him in and the last owl will fly away.
When you gain control over Zidane again, move to the left and search to the right of the shop to find an Elixir. Head inside the shop and you can buy some weapons and armor from the black mage shop keeper. Leave the shop and head to the left, you can save your game by talking to the moogle Mogryo, he also has a letter for you to deliver. Go inside the house and pick up the Gysahl Greens by searching to the right of the house. Leave this area and head back to the start. If you go through the passage in the middle you can visit the item shop. Talk to the black mage and you can buy some items, you can purchase Remedies at this shop so stock up on them if you are low.
Search by the left to find an Ether, then leave the shop, cross the bridge and head into the inn. Search by the beds to find the Virgo Stellazzio. Exit the Inn and continue following the path until you come to the Synthesis Shop, you will find Dagger in here. Talk to the mage standing in the corner to look at which items you can synth. Climb up the ladder and search near the end to find 843 Gil, a ‘!’ will not appear above Zidane’s head, just search at the end of the plank. Head back down the ladder and search behind the pillar to find a chest containing 2000 Gil.
Leave the synthesis shop and exit to the left, talk to the black mages and then go back to the Inn. Choose to rest when you are ready, watch all of the scenes and once they are finished leave the village. It is now time to head back to Conde Petie.