Welcome to the town of Sholoss. The first thing you should do (like after any battle) is go to the Inn and Hospital and revive all your characters, then sleep at the Inn. It's no fun going into a battle at less than full-strength.
You'll also have the opportunity to pick up some weapons and armor here. Personally, I'm not a fan of buying swords in this game, since spears are so much better, so you may want to skip on buying weapons for now. Armor's a better deal, and you'll probably want to buy some Leather Armor for your Archers and Fighters, and maybe some shields for your Hero and Fighters. What you should definitely buy, however, is some extra Herbs at the item store, and a Book of Strim if you don't have at least one already. After shopping, go to the pub at the northeast part of town. Enter the door on the left and talk to the dance instructor and watch the scene unfold.
	Not much else to do in this town, so head out the southern exit and to the next battle.

PICTURE	NAME	HP	MP	AP	DP	EXP	G
	COMMENTS
	Stinger	10	0	9	3	3	10
	Flies
	Garmanii	11	0	11	7	5	20
	Can attack from 3 spaces away.
	Pyon	10	0	16	4	5	18
	Can move again after attacking.
	Shmealth	18	4	12	12	8	24
	Casts Burnas
	Escargak	33	0	14	16	8	30
	-
	Sekol	10	0	6	0	1	2
	-

There's a big spike in the game's difficulty here. Lots of tough enemies, and you still only control one army. You may want to do some leveling up to make the battle easier. To raise experience and gold, just leave the battle in the middle of it. You can leave either by using a Book of Strim or by placing your Hero on top of a town, then ending the turn. Don't hesitate to retreat if you're feeling overwhelmed.

The first thing you should do (and get into a habit of this) is unarm the monster den. To unarm a den, move one of your characters right next to it, then a new command, "unarm", will appear. Select this to make the den stop producing monsters. Of course, this is easier said than done. While you're doing this, the first group of monsters will be attacking you. Wipe them out, and don't hesitate to heal any of your characters whose HP fall into the single digits. Isaac is extremely valuable for taking out the Germanii.

After the first group of enemies is defeated, hold your ground. The third group should be advancing toward you, and if you start moving, you'll have to fight them at the same time as the second group. Wait for the third group to make it to you, then take them out. The Shmealth will probably sit back and hit you with Burnas twice. There's not much you can do about this. The good news is that it only has enough MP to cast it twice. The Escargat is simply tough as nails. Take out its comrades and surround it and it'll go down eventually.

Make your way toward the next group of enemies. A few Stingers from the other Dens have probably materialized by now, but they should be easily defeated by now. The only thing you need to worry about with this group is the Smealth. Burnas can help take it down quicker, but you might want to conserve your MP. Now advance to the final group.

Be aware that when you reach the forest just north of the final group, the Smealths will probably attack the closest character with Burnas. So make sure that whoever approaches first has plenty of HP, or they WILL be killed. The Escargak is blocking the bridge and won't move, so just don't move next to him and he won't hurt you. So, stay back and take care of the Smealths and any Germanii that approach you, then work on the Escargat. Since you don't want to go next to him, just put a Fighter with a Spear two spaces from it, and an archer behind him, and pick away at its HP until it dies. Then, you should just be left with Sekol. One hit should do him in. After taking him down, you'll be forced to forgive him. Unlike Suikoden, you can't choose to lop off his head, unfortunately. But the good news is that after he dies, the battle will be over!