Hot on the trail of Terra, the Returners have made their way (via sunken, travelling castle) to Kohlingen, a small town on the northeastern tip of the continent. Will the team find Terra here?
It's good to note that this area is full of new enemies of comparable strength to your level. Not a bad place to level, though you can get yet better experience if you travel south (which you will shortly). You'll especially want to avoid the desert surrounding Figaro Castle, as it's home to Fossil Dragons. These beefy undead predators give a good chunk of money when defeated, but their attacks can be devastating at your level, especially if one uses Bone to inflict zombie status on your party members. Use fire or holy attacks, or restorative items, to bring one down quickly.
Before exploring Kohlingen proper, head north along the western shores of the continent. Near the northern tip you'll find a small house inhabited by a war-crazy old man. He dreams of building a coliseum as a monument to war. Maybe, one day… for now, steal the Hero's Ring from the pot in his house and leave him with his dreams. You can also find a Chocobo Stable hidden in a forest to the north of here.
Head back to Kohlingen. This little community doesn't take long to explore, but there are still several things to check out.
Inn and Pub
This building is rather unremarkable despite its size. Staying in the inn costs 200 gil. The only thing worth noting here is the presence of a familiar, er, mask: Shadow! The notorious assassin mercenary is sitting in the pub, and if you have less than four party members he'll offer to join your team… for, you know, 3,000 gil. Despite Shadow's innate coolness, this isn't a great offer - he has a tendency to run off way too early in your adventure, and will do so automatically if you try to take him to Narshe.
(If you do recruit him and stay at an inn, you'll probably get to see some dream flashbacks. These are bizarre, but they help flesh out Shadow's backstory.)
Well, it's good to know Terra's been this way.
This handy outlet covers items, weapons and armour. Everything is the same as what you could find in Narshe, though here you can purchase Shadow's powerful Flame, Water and Lightning Scrolls. All are Throw items, and all are great (though costly) substitutes for magic or other all-hitting attacks.
Old Man's House
Standing in the northeast corner of Kohlingen, this house is the abode of a crazy old nut who keeps a sleeping woman in his basement. Talk to him with Locke in your party to learn a bit of Locke's past, and why he has such a thing for protecting women in trouble. You can also use the bridge at the rear of the house to get in the back door and steal a Green Beret from a chest.
An abandoned home in the northwest corner of town, Rachel's House serves as another flashback spot for Locke. Whether he's with you or not, check the clock for an Elixir.
All in all, not a lot of help to be found in Kohlingen, and only evidence that Terra's been around. The townspeople will point you south; best follow their directions and head that way, to the next town on the map. Jidoor it is.