Katarina does not feel well about sending Lazlo off. But, two of your friends that you used most will join with you (Paula and Keneth for me).
Then, Mr. Chiepoo busts through a box. The foursome does not know what to do with the exiled ship. Just sail along with R1 and fight some Fly Lizards.
After a few battles, you notice a ship. It seems to be a 'merchant' ship, headed by a mysterious guy and an older gentleman, Colton.
Speak with the strange man in the coat, and then go inside the ship cabin. Save your game and search the table for a Treasure Map. Then, talk to Colton to rest.
As you get up, the party tells the group that you are former knights of Gaien. ??? and Colton will waste you in two turns. You do learn that his name is Troy, the same guy you heard about earlier. A battle resumes against two Kooluk Knights. Your group will gain some levels for this. One more battle and you will jump on your old ship and row away. No battle against Kooluk Knights Troy : Colton.
Sail around and fight a random battle. After this random battle, you have a boss - Water Dragon. Use Berserk Blow and level one Rune of Punishment magic. The Water Dragon has a lightning attack for 15 damage and sleep status. If your HP gets low, just use Medicine. And when you run out of magic just use physical attacks - the Water Dragon has close to 1500 HP so it may take a while. It is mostly just annoying with it's sleep spell. You get a Dragon's Bone and 1000 potch for victory. But, the sea monster unleashes one final water wave to knock your party out.
You appear on a Deserted Island. Speak to your friends a few times and they join up.
Check out the area. Look for the foresty path, which leads to an open area that has a Necklace at the far end. This goes to Chiepoo. Now, search the cave. At the end (Subterranean Lake), search the glowing green spot to recover fully.
Return to the main area, and the party realizes this is a deserted island. Chiepoo will collect food, then tell the others what to do. Choose the last one for Lazlo, collecting Coconuts. Then, go to the edge of the island and find some.
Once you finish your task, go to the Subterranean Lake to see a mermaid. Search where she left for a Lucky Ring. Back outside and save, then talk to everyone to have them join up. Continue through the forest-y region to find the third person, and then go back to where the ship is. Take that side path with the kettle and food. Get some rest.
More tasks the next day. They're the same, so you might as well do the same task that you already know. Then, go through the cave to the Subterranean Lake again. The mermaid gives you a Water Amulet this time. Return out, gather everyone together, then go rest once more.
Return to the Subterranean Lake, and the mermaid talks to you. Say 'I will do no such thing' then grab the Guard Ring. Gather everyone together and go to rest once more. Chiepoo asks about eating the crabs at night.
Next day, the boat is finished. Looks like it has been recovered from this island after 1000's of years of being molded in as one with the forest. Anyway, talk to your friends but Chiepoo is not here. Strange sequence with the mermaid, talking about 'the cat' and 'the master'. Go up through the forest to the mountain.
A boss crab is at the top. Defeat the weaker enemies with it, but the big crab cannot be hurt. Lazlo uses the Rune of Punishment and the crab opens it's defenses up. Use the Rune of Punishment - Eternal Ordeal on the Boss Crab. Hopefully you have Keneth who can use Berserk Blow to take out the smaller crabs, or use Paula's Wind of Sleep. Of course the bigger crab has the stronger attacks, doing about 50 to one person with the blue-ish wave attack. Continue to use Keneth's lightning magic and the Rune of Punishment, when you are not healing. A Crab Bun, Crab Shell, and Giant Crab Shell will be dropped. Not to mention a lot of potch and you will level up to 21 or 22.
Lazlo passes out afterwards, for using the Rune of Punishment. Run through the strange shadows and listen to their words. Attack the shadow at the end as usual.
Talk to one of your allies when you get up, and you are ready to leave the Deserted Island. The mermaid Lilin tells you of land straight south of here.
As you sail about, fight a few random battles. Then, you fight two Killer Rays. Work on taking one of them out first with your strongest spells (The Shredding with Paula, Thunder Runner with Keneth, Eternal Ordeal with Lazlo). The enemy rays have a combined attack for about 70-80 damage on each character, so you will need to focus on healing after absorbing one of those. Not too difficult, and you get a Water Rune Piece and Jizo Clock for victory.
Talk to your allies. Your oars are gone, and you're screwed again it looks like. But, Lazlo sees a ship. Desmond comes out and speaks with you. Tell him your name, but Desmond freaks when he sees your rune. He gets Lady Flare to check it out. Turns out, you are with the princess of Obel. You are going back to Obel now.
Obel Royal Ship
Talk to everyone on the deck, then go inside. Talk to the other guy, Flare, and then save. Go back outside, talk to everyone once more and Desmond says we're getting close to Obel.
Kingdom of Obel
Desmond and Flare tell you to check out their place after you search the town a bit. You can use the appraiser here and talk to Yu to have him heal you. Go to the far right and up the stairs as you get to the enclosed route. Next area, you will see Ornan and a lady that hands Soap over to you. Above is a great defensive gear shop and the blacksmith. Spend all of your hard earned potch here, getting your weapons to level 5 or 6 hopefully, and getting a bunch of new defensive gear. Go further up the stairs at the enclosed route.
The rune shop is up here. Finally, you can buy Lightning Runes. Do this for Chiepoo and probably the hero too. If you still have potch, after that haul at the blacksmith / armor shop.
At the very top is an interesting looking guy, who says the king is probably in that big building. Go inside the Antechamber and talk to Stachesu. I mean Setsu. He allows you to come in and rest thanks to Lady Flare. You will meet Lino En Kuldes, who wants to talk to the hero. Lino en Kuldes says that the Rune of Punishment was originally found here in Obel. He tells you that you should check out the ruins. Lino En Kuldes hands you the Ruins Entry Permit so that you can go in. Outside, Lino tells Desmond to get your living quarters ready at the Wharf.
Travel east of the Kingdom of Obel castle to reach a cave-like structure. Inside, is a huge ship. Desmond introduces you to Louise - also, Tov joins and Chadli joins.
Go to the First Passageway and to Lazlo's room. You meet the Executor of Balance, Leknaat, who tells you of the Rune of Punishment and it's relationship to the user.
Meanwhile, a scene with Troy, Colton, Ramada, and a few new gentlemen. There is the Governor and a scary man in Graham Cray. Snowe of all people comes into the meeting, obviously to rat on you leaving Razril.
Now, you can enter the Ruins of Obel to continue the storyline, or go do whatever you want and recruit members / explore. You can even set sail with the ship at the harbor.
First, go in town to the Blacksmith and go down the stairs. Talk to Ornan and he will join you. Prepare everyone by fighting in the ruins for a bit, and then head to the harbor to get on the ship.
Northwest of Obel is Mordo Island. It is a small but calm island. That said, you will be fighting enemies around here.
Buy a Crystal Ball at the trade shop since it is cheap. Look in the back of the place for Window Set 4. If you need to rest up, just take a dip in the Hot Springs. It is free and restores your HP and MP.
Not much else to find here. You can fight around if you want especially since you can recover your HP and MP for free. When you are ready, leave and start heading north.
Directly north of Obel is Nay Island. Or you can look at it like Nay Island is just a tad south of Iluya Island, so set your charter to Iluya. You will come across Nay Island along the way.
Take the stairs down to the right as you walk along the harbor. Talk to the old man then grab the Wool Loincloth. Nay seems to be an older clan. Head north into town.
West as you enter to see the blacksmith. He can sharpen your weapons to level 7! Lazlo's Twin Heaven Fang is quite powerful at level 7. Go up the west stairs and look for a Treasure Map in a chest nearby.
The village chief's house is to the east. The chief welcomes you and you can search the shelf in the back for another Treasure Map. Check out the 'high ground' for an Inn. Rest and save here, then search the west shelf for Old Book Vol 6. One of the Inn rooms has a chest with another Treasure Map.
Back to the Harbor area. See those steps going way up in the east part of the port? Go up them.
Head through Stonecutter's Field here. As you head east through the field, look south for a Treasure Map chest.
As you enter the Nay Kobold Settlement, talk to Bang the lottery worker here. He can be recruited later. Enter the trading post to talk to Perrault a few times. Tell him to join you and that there will be a lot of people there - Perrault then joins your army.
By the appraiser on the right side of the village is a Lightning Orb behind him. Walk up the long winding path nearby to the hot springs. Enter the residence in this new area and talk to Bartholomew. Bartholomew has Old Book Vol 3 in his house.
The hot spring is in the back. Go to the left of it and make your way to the back and search for a Treasure Map. You can dip in the hot springs if you want your HP / MP restored. Otherwise, not much left to do in the Nay-Kobold Settlement.
Back on the Obel ship, and travel east (and a tad south). You will see a new island, not too far from Nay. It is Na-Nal.
You fight battles everywhere here. They are pretty tricky. Worse yet, there is a Golden Hairball to the east behind the ship on the shore. Please use your best spells to kill it quickly (about 500 HP) because it has some scary attacks. You will acquire a Stone of Evasion and a Treasure Map for your victory. Then, enter the boat right by it. Up those stairs and search around the basket for yet another Treasure Map.
The town of Na-Nal is just to the north. If you go east, you have the Inn. Rest and save, then talk to Rita. You will need to learn how to succeed in this funny version of Mahjong. You might lose the first few rounds but then you'll get the hang of it eventually. After you win several games, settle the score then talk to her again. Tell her to go to your ship and you will recruit Rita.
West for the Equipment Shop (with a Fire Magic Ring in the bargains) and further west for the Hot Springs. Back to the intersection by the Inn and north to continue.
Northeast for the Armor Shop here, which has many goodies including the Pirate Armor (Bargain). Check the boxes west of the Armor Shop for another Treasure Map. Further north and into the nearby Rune Shop. Look around the right side of the room for a Treasure Map. They have the valuable Killer Rune (albeit for 5000 potch) but it makes your physical attackers into monsters, with several critical hits. At this point I generally have Lazlo with Rune of Punishment and Lightning Rune, Chiepoo with Lightning Rune and Water Rune, Keneth with Killer Rune and Lightning Rune, and Paula with Wind Rune and Lightning Rune. The excess Lightning Rune's are great for the level 1 spell not to mention Lighting Runes are always overpowered in Suikoden games and this version is no different...but, it is vital you have at least one Water Rune user for healing.
Reinhold is at the north part of this area. Reinhold wants you to take care of some girl in red in the next area. At the Na-Nal gathering square, talk to Mitsuba. Offer to duel her - she is not as strong as she acts. Two specials should nearly kill her. So, be careful starting off like most duels just to ensure you are picking the right move. Mitsuba and Reinhold join your party after you defeat Mitsuba in the duel.
Go to the north part of town, with the Na-Nal Chief and his son Axel. Grab the Stone of Strength chest in their house, and that's about it. You can visit the prison or Selma and the Elves, but there is nothing doing.
Ruins of Obel
Take the left route (the route opposite of the Wharf route from the Obel Antechamber). You will meet a young kid, Rakgi. He allows you to go in. The purple ghostly soldiers resurrect themselves unless they are the last to die. Fortunately, they have low HP to offset this.
The first route is simple, but then you get to an area with multiple paths. Down the stairs and take the southeast path for a Thunder Amulet. Back to the other area and go west along this lower floor for a 5000 potch chest. In the big room, the northwest path continues on.
Take the east route at the T for Magic Hand. Keep going west now, through the T. Eventually, the path winds south to another T, with a treasure nearby. This is a One-Piece Dress. Get it, but continue south for a treasure BUT DO NOT GET IT. This is an Angel Hairball, and you absolutely cannot win this battle right now (the thing has 3000 hit points). If you are stupid enough to engage it, just continue to run from it.
So, back to where you got the One-Piece Dress. Go through the door here, and then take the north route into a new area (further west is a dead end). Go up the nearby stairs and take the first east path you see for Window Set 2. Up the stairs one more time for a save point.
Take the east route first for a path that leads to a T. East at the T for a Mega Medicine and then west to another T. Taking the south path leads you back to the room with the Save Point, so just keep going north after you heal up.
Rakgi warns you about the Aura. Sure enough, 'Guard' emerges. Use your strongest Lightning Rune attacks, and or Rune of Punishment attacks (though you have another boss battle so you may want to conserve some of that high-level rune MP). Guard has a sphere-like attack for about 60-80 damage to one character. After a decent amount of damage, Guard will flee and you will gain Platinum and ? Ornament. Take this exit now.
You will be outside, at the Inner Ruins. Get Mushroom x3, Mega Medicine x3, Escape Talisman and save. Search the tree in the far end of the next area for a Treasure Map, then talk to the lady.
This is Rikie, Rakgi's mom. She sees the Rune of Punishment on your left hand. Seeing you, Rikie realizes her husband must be dead. As you try to exit, that Guardian comes to stop you. This time, it has two different colored hands to attack you with. It has a sonic wave attack for about 50-70 damage on everyone. It's physical attack is even more powerful, around 100-120 damage to one character. The Rune of Punishment and your Lightning Runes should carry you through this battle. A Diamond and Iron Hammer are your rewards.
Afterwards, Rikie and Rakgi join your party. Fortunately you appear back at Obel after this episode. Return to your HQ and talk to Manu near the boat. Agree to have him transport you to the harbor of Obel. Get on the ship.
As you reach the Obel Sea, you hear a mermaid calling for help. It's Lilin. She joins you and tells you that bad people stole her friends.
On the world map, you will see a huge white dot - go towards the ship to slam next to it. Choose the first option to the thug that talks to you. These idiots want to fight you, it seems. Use level 1 Lightning Magic to maul them quickly, if you even need to use that. You fight three Captain's Staff, and then three more of Captain's Staff. Then they give away their identity that they are the Cray Trading Company. You can shoot those idiots down if you want, either way Lilin thanks you and joins your army.
Sail back into Obel. Dario and Nalleo are here and they see you with a mermaid. They think you are the one selling them.
Another ship battle vs. Pirate Dario. You will want a Fire Rune Cannon user and a Water Rune Cannon user. Tov might be your best Fire Rune user unless you gave a better character the Fire Rune. Also a Water Rune user will be needed. As you notice here, the rune cannons that any given character can equip go hand in hand with their own runes equipped. Anyway, this battle is as simple as using the Fire Rune Cannon user constantly, as you will either draw the enemies weakness or neither party will sustain damage. Dario and Nalleo retreat despite Lilin saying you are allies.
Another scene with Dario and some new characters, Sigurd, Hervey and Lady Kika. Re-enter the Obel Harbor after this.
The Obel soldier tells you to go see Desmond. Desmond has a new message for you - hunt down Oleg, who is said to be in Nay. He has some interesting knowledge that Lino En Kuldes wants. Talk to Desmond again to form your party. Might want to bring your lower-level characters so they can build up levels and sharpen their weapons at Nay Island.
At the higher ground part of Nay Village, go to the part east of the Inn and talk to the guy. This is Oleg. Tell him you would love to see how his invention works.
At night, try to leave your room at the Inn. Graham Cray showcases some sort of power directed towards Iluya, and Troy flips out about it.
Next morning, go to that thing Oleg was looking at. You'll see the blast of energy torch Iluya. Then you hear people washed up on shore. Go to the beach and you will see a couple from Iluya.
Not much else you can do besides return to Obel.
As you get back, rest and save. But a ThunderGodGarb at the Armor Shop bargains. Then go to the Antechamber. Talk to Lino En Kuldes and he is sure that Kooluk is going to invade the south now. Lino recruits Oleg for you.
Walk towards the Wharf, and you will get ambushed by Akaghi and Mizuki, the two you saw in Razril back in the day. They are not hard and only have about 500+ hit points. Gang up on one of them early on to end the battle quickly. Level one Rune of Punishment makes quick work of one of these two. But, you get a decent amount of EXP and should be around 31-33.
Ramada is apologetic and is looking for some sort of confirmation that you won't kill them. Take Louise out of your support slot, if she is in it. Then talk to Manu to go back to the beginning of Obel.
Speak with the Innkeeper, then a scene happens. Talk to the lady by the Inn now, and then start to follow Cedric as he runs back towards your base at the Wharf. Follow him here and talk to Louise. She is hiding Cedric here and he will join you. Also, because of Cedric joining Lazlo will absolutely fly if you hold down R1.
Return back to the Antechamber at the top of Obel. Lino En Kuldes knows ahead of time that Cray Trading Company is behind Ramada, Akaghi and Mizuki's attack. After learning that they are simply a pawn, Ramada, Akaghi and Mizuki are recruited. Setsu though is worried about Lazlo's presence here with the Rune of Punishment.
It is night time - head towards the Wharf. Unfortunately, you will see a fleet of Kooluk ships rolling in. Uh oh. Note that if you continually choose the second option here (not to use the Rune) you will get the bad ending. Use the rune instead, and fry the Kooluk fleet. Lino En Kuldes can see from afar that you are in pain. Time for a naval battle with the rest of the Kooluk advancers.
3rd Kooluk Fleet vs the Obel Warship
Okay, the enemy has a ship with a Fire Rune Cannon / Wind Rune Cannon, and another with a Wind Rune Cannon / Earth Rune Cannon. To combat the latter, get Paula or your best Wind Rune user. And for the former ship (enemy flagship) get a Fire Rune user like Tov. At worst, you have split even against the enemy and at best you'll get their weakness. Fill up the Fighters on both of your allied ships and get ready for battle. Try to have Lino's ship work on the Fire / Wind Rune ship and then have Paula launch Wind Rune Cannon shots at the smaller ship.
Back at the Obel harbor, Lazlo passes out in front of Chiepoo. Another scene with the Rune of Punishment, this time focusing on Brandeau acquiring the rune. Rune of Punishment has now reached Level 3.
Lazlo wakes up in bed, and when you go out in the saloon everyone will be talking about the Rune of Punishment and the prospects of it falling into enemy hands. Try to head into Obel town, but you are blocked by a soldier. Kooluk seems to be advancing.
Back to the Wharf, and go to the war room on 1F. Lino En Kuldes tells you to go into town and recruit anyone else before you leave, notably a doctor. Take off Flare's equipment, it is more useful on your other character's as Flare is not usable until later on.
Run into town, and talk to the couple by the Antechamber. Gary and Emma won't join you, they'll stay on the island. Talk to the old guy in front of the Equipment Shop and he will join, and you get a scene. Check out the area by the Armor Shop and Blacksmith - tell the two ladies to flee to the ship. Sharpen Flare's weapon to 6 if you wish. Also, you see a scene with Pablo. Strange looking guy.
Go by the trading shop. You will see Adrienne here. She will join you - she is a blacksmith and will take the Iron Hammer you got from the Guardian so she can sharpen weapons to level 9. Talk to Yu nearby, the doctor, and he will join you too. Go to the docks and tell one of the fisherman to go to the ship, and he will. The other stays. Flare says it's time to go, so return to the Wharf. Flare wants to stay in Obel.
Head to the War Room. Setsu leaves too. Tell Lino that you are ready to go. Setsu does his best to distract the enemy. Lino, Lazlo and friends flee Obel.