Onward to Lyton
On the ride back, Jessica proves that her flying skillz don't compare to her sailing skillz. The balloon goes crazy in the high winds and crashes eventually in Reza. After the crash, the Guild members take your balloon and leave you there without even checking on you. How rude! After a while though, Laike and the Mayor come to check on you. Talking with the mayor only further depresses him since you didn't find Lily. Talk to Laike. He tells you that the Meryod Bridge is now fixed and that you should head to the Stadius Zone and seek out the Blue Dragon. Good idea. Once you are done talking, warp to Meryod. Once you land in Meryod, use the Althena's Statue and then head to the tavern to find out why thier singer hasn't been stolen yet. *snicker* Then, cross that newly built bridge and enter the weapons shop and upgrade before continuing on to the Stadius Zone. When you are ready, exit Meryod via the exit near the weapon shop and enter the Stadius Zone.
From Meryod, you'll have a rather long walk north, but you'll notice that there is a forest near where the path turns from east to north. This is the Forbidden Forest, and rightfully so. The enemies here are damn near invincible. However, there is also a reason since the female Bathing Spring is on the other side. For now, just pass this deathly inviting place up and head north. After a very long walk, you'll come upon the town of Lyton.
As you enter Lyton, your eardrums are assaulted by the horrible music! Enter the Elder's house in the north part of town and speak with him to get ze scoop. Apparently, monsters have invaded Lyton Cave and messed thier ancient musical valley chime. This is awful, not only for the bad music it produces, but also for the people of Lyton since they die if they cannot sing. He grants you permission to enter the Cave, so head over to the armor shop (no weapons shop here) and upgrade your equipment and then head to the cave. The entrance is due east of the elder's house. Talk with the man at the entrance, and head on in.