NORG, the master of disaster
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Items: None worth mentioning
Annnd it's time to pay
Have Squall climb up the ladder, check the control panel, go back down the ladder and back to your party. There will be another ladder by the green light, so do what's expected of you, go down this one as well. Save. Pull the lever. Fight the demi-bosses.
As all monsters in this area, the Oilboyles are incredibly weak to fire. Junction Ifrit a few times or junction fire- elemental spells to your elemental attack, whichever suits you best. These monsters really are incredibly weak. If you actually do need to heal (which I doubt), draw the spells and cast them on yourselves; these monsters aren't worth wasting your own spells for.
Proceed down the bridge, then search the controls. Activate the big round lever--- and watch the garden fly! Yes, you now successfully obtained your first vehicle (well, aside from trains and cars) which you can explore the world with. Better even, the garden can swim! Whoever came up with this idea must be a crazy cat... Unfortunately, it is very slow. Very. Veryyyy slooow. Oh, and there's another small problem: you can't really control it yet. Oh well.
Either way, the garden is saved from the Galbadian rockets now, and the director orders you to take a look at the other students and see how they're doing. Wake up the next morning as Squall, and show Rinoa around the garden. Shmalzy scenes, anyone? Once you have a look at the Garden overview panel at the front, a guard will tell you that a certain "Master NORG" wishes to see you. Master Norg? Yes, that's his name. Alright, go back down to the sub-level of the Garden to pay this mysterious master a visit. Note how he is very ufly, and just as impolite. Eventually, the conversation will end in a boss-fight (or should I say, master fight?). Meet master NORG, and all his fancy machines. It's time to kick some butt.
Simple yet effective strategy: Hit the orbs and the capsule with physical attacks, because once the orbs change their colour to red you're in big trouble. Not only that, but the orbs are immune to everything but physical attacks anyway. Don't waste your strength on the orbs if they're still blue anyway though. Once NORG's capsule is broken, you can draw the GF Leviathan from him! You should definitely not miss that; not only is he a pretty GF (and quite effective on some nemies), he also has some very useful abilities. Also, once the capsule is gone, NORG will be weak to anything wind- elemental in case that's of any use to you, so.. make use of this weakness!
After having shown NORG who the real master is, you should check the area by the left orb for a hidden Bio- drawpoint. And now it's finally time to leave this creepy place. Pay director Cid a visit, he's in the infirmary and will answer you some questions and provide some interesting information. Now go back to the entrance hall where Xu is waiting once more. On the north balcony of the second floor you will meet a few people who call themselves the White SeeDs, and claim they've been sent by Edea to pick up Ellone. ...Ellone? Yes, Ellone, in case you remember the little girl from Winhill. You will find her in the library between some bookshelves, and after talking to her she will leave the garden and join the White SeeDs. Weird, all of this. Well, what do we do now? The same thing we do every night, Pinky. We'll try to take over the world. But first, Squall will have to go to sleep in the dormitory, as usual.