We got Sylph taken care of back at the card shop... and now we find ourselves exploring this Dwarven Town (LALI-HO!) for clues on where to go next, like what this barkeep just told us about the Lost Woo-- I mean, Forest.

...also, this "Dwarven" Town is strange - I've only met ONE person here who even remotely looks like a dwarf back at the house I woke up in. Everyone else around here is suspiciously beardless, not wearing horned helmets, and there are absolutely no pick-axes or other such digging tools in the area.