Suikoden III Hugo Lilly Chapter 2
Plain Amur-North
Karaya Village is no more, so go towards Duck Village with Sgt Joe and Fubar. Watch out for Peckles, the area boss. He can be a bit tricky for just these three.
Duck Village
Rhett and Wilder come running in to greet Sergeant Joe, who was just thinking about how long it's been since he has been here.
Near the west part of village, a scene plays out with Lilly Pendragon from Tinto - daughter of Gustaf in Suikoden II. She is looking for the Flame Champion. Follow her to the Inn after this, and you will talk further about the Flame Champion. Naturally, she wants you to accompany her and she's willing to pay you 4000 potch total for your services. With Lilly, Reed and Samus, Hugo and friends are to travel to the Great Hollow. As you finish up talking to Lilly, talk to the Chisha-looking villager for Old Book Volume 5.
Buy an Earth Rune, and then affix that to Samus. Take Samus' Wind Rune and affix that to Lilly (taking off her Sword of Rage). Samus is so poor with Wind Magic that you are better off forgetting that, and using all of your ability points to level up the Earth Rune. This plays a key defensive role in the upcoming fights. Likewise, Lilly is at least average with Wind magic.
Underground Highway to Great Hollow
Build up levels for a bit in the first two areas of the Underground Highway. You don't want to go too far west, setting up a boss battle you aren't quite ready for. Get to the low 30's, fighting an area-boss will help immensely with this. Anyway, after this head out and go to Brass Castle.
Brass Castle
Sharpen everyone's weapon to level 7, and get some Belt of Strength's for your allies namely Hugo.
Underground Highway
Rest and Save at the Duck Village before heading back here. Go all the way west and say you want to talk to this group of strangers.
The ManInBlack decides to battle you, if you chose that option. ManInBlack has lightning magic, but his physical prowess is downright scary. He will parry or dodge your attacks often, and the only really good option for attacking is Hugo and Fubar's mounted attack, and even that can be countered or dodged. Use up The Shredding early on from Lilly's Wind Rune, then use Sgt. Joe's Water Rune to stay on top of healing. This is a very tough battle, with the ManInBlack having a substantial amount of HP. Even when he gets close to death, he will become Berserked, taking off even more. You will have to take him out quick at this point, because he will carve up Fubar and Hugo fast - even a fully-healed group of those two. Use whatever you have to get him down. You will gain a level or two, and get the Gold Emblem for victory. Plus, you learn the ManInBlack's name is Yuber.
Finally, you can continue west in the Underground Highway.
Great Hollow
As you get to the Lizard Clan's Great Hollow, you hear blades. You can choose to rush and fight, or to sit back and wait. In which case, you will see Chris and the Zexen Knights roll up.
Chris and Lucia get in a verbal spat. After the confrontation, both sides back off.
Enter the Great Hollow. Needless to say, it is not what Lilly envisioned. Luce and Lucia see Hugo, alas you must tell Luce the terrible news about Lulu.
When you regain control, sharpen Hugo and Sgt. Joe's weapons to Level 9. Then go up to the training center, and unload all of those ability points on physical abilities for those two (Swing, Accuracy, Heavy Damage (Sgt. Joe), Continuous Attack (Hugo), etc).
Look for Lilly and the Tinto folks up by Dupa and Shiba, on the top by the chief's room. Dupa tells the story of the Fire Bringer and Flame Champion.
Back down the stairs after this, and go towards where you found Twaikin with Thomas / where Geddoe went to see the Zexen's in Chapter 1. You will see Lilly and her Tinto crew. Insanity ensues, but they don't have your money so they just join again.
As you leave the Great Hollow, you bump into Jimba. You haven't seen him in a while either so he learns about Lulu's death too. Bring Jimba to Lucia to have a talk. Jimba then comes back to Hugo to ask for him to go to Lake Castle / Budehuc, to investigate the new lord and possible Fire Bringer.
Go to the Inn and speak with Anne. Put Fubar in your party, then rest / save. You will need to spend more time at the ability center with the Tinto characters and Fubar. Your party should be much more formidable now. Just as you leave the Great Hollow, it is the end of Hugo Chapter 2.
