First, you'll have to either import a Hero, or create one from the ground-up. If you do create one, pour points into the most important stats (Offense for Fighters and Paladins, Magic for Wizards, and Thief Skills for Thieves), then put the rest into Vitality. If you still have a few points left, spread them as you see fit.
After either importing a Hero or creating one, you'll end up in Erasmus's house. He'll explain the situation, then ask you where you want to go. Choose Silmaria.
You'll end up in a Gazebo at the North end of the city. Your first task should be to explore, but before you do, learn about the Colloseum from Ferrari, then stop by the Hall of Kings.
You'll meet your old friend Rakeesh inside, as well as a new face-Logos. You'll learn about the current situation, and be asked to enter the Rites of Rulership in order to catch the villain. Agree to do so, then leave.
Now head down the the West section of the city. Stop by the bank to pick up your drachmas, then hit the shops. Buy a map and about 5 Amphoras from Wolfie, the wolf-man behind the cart. Go to the Magic Shop and pick up a set of Magic Magnets. If you're a thief, buy some daggers from the Weapon Shop, but otherwise don't bother with weapons yet. Head to the Food stand to get (what else) some food. Also, go to the Inn to check in and get a meal.
Now, after that, head back to the North end and talk to Rakeesh. He'll be on the rock by the entrance to the Colloseum. If you're a Fighter, Wizard, or Paladin, he'll give you the Katta Pin. If you're a Thief, he'll give you the Magic Grappel. Be SURE to get to him on the first day! This is a one-time-only chance!
Now, go to the Adventurer's Guild. You'll meet yet ANOTHER familiar face, Toro! Talk to him, then sign the log. Now, see that treadmill? Spend some time exercising on it. Walking will raise your strength, and running will raise your endurance. Before you even THINK about going on the rites, max these stats out!
By now, it'll be night. Thieves can go to the Thieve's Guild (It's located at the bottom of the bridge tower to the left of the Adventurer's Guild). Solve the puzzle and enter. Here you can get a torch or two, some rope, and a Pickpocket Knife! You can now pickpocket! Still, it's rather useless, but practice it on the dummy anyway. You'll learn about a contest for Chief Thief, but can't enter it yet.
Go to the inn and eat another meal. Go to your room. Take the sheet from the drawer-you'll need it later. Put one magnet in the chest. Now, sleep.
The next day, eat a meal at the inn, and go explore the outside continent. Be sure to pick up some rocks before you go to the next stop: Pegasus Mountain!
At Pegasus Mountain, use one of the Amphoras on the stream at the right end of the area. Next, stand on the end of the seesaw-like slab and either throw a rock at the boulder above you, or cast Force Bolt on it to knock it down, sending you flying to the ledge! Walk to the low-hanging branch and click on it. Walk up to the nest and grab some Pegasus Feathers. Use the leftover magnet to return to your room.
Give all but one of the Pegasus Feathers to the Apothecary, Salim (another familiar face). Now, go rest at the Inn, and go out again. Now you do the oldest ritual in RPG history- kill monsters for money!
If you're having a hard time finding enemies, go to one of the Dragon Pillars- monsters ALWAYS hang out there! Just don't go there at night-you don't want to fight a shade yet. Believe me. Get doing this until you have the 1000 drachmas needed to enter the Rites. Then rest up and go to the Bank. Select Enter Rites and leave. Go to the Hall of Kings. The gate will be open. Save, then enter. The Rites of Rulership have begun.
To the Rite of Freedom