Black Mage Village

Upon entering the green patch at the far end of the forest you’ll have two paths to choose from. Read the sign in-between them and take the path “where there are no owls.” Repeat this until you catch up with the mage.

After everyone runs off you can explore the town and watch the series of ATE’s. The weapons shop is to your immediate left. Up the stairs in front of you is the items shop. Go around to get to the entrance. Inside the item shop to the left of the counter is an Ether.

To the immediate right from the main entrance you'll find an Elixir.

Up the path to the right you’ll find a chocobo stable. To the right of the entrance are Gysahl Greens. Talk with Mogryo the moogle outside. He’ll ask you to deliver a letter to Mocchi. Inside you’ll find Quina.

Taking the center path around to the right you’ll find the item shop (left) and the Inn (right). Note that this Item shop is the first to sell Hi-Potions so stock up while you can. Search in the sleeping portion of the Inn to find the Virgo Stellazio.

Now go around the front of the item shop and then around the left side of it. The building in back is the Synthesis shop where you’ll find Dagger. Partially hidden behind the sitting mage is a chest with 2000 gil. Go up the ladder and search the platforms on the roof to find 843 gil.

Now follow Dagger out and go left. Vivi will run past but go left anyway. Talk to the mages and then go find Vivi at the inn. Rest and proceed through the following scenes.

After you find out that you need to get past the barriers at Condie Petie you’ll be prompted to get back there. Before you leave, though, there's one more treasure hidden in this town. First go speak with the mages in the Synth shop and overhear about the item shop's "usual" item. Then go ask the item shop attendant for the "usual". He'll leave his post, opening up the path to the ladder behind the counter. Climp up the ladder and find the exclamation point that allows Zidane to open the chest danging from the celing. You'll be rewarded with a Black Belt. After this you're ready to move on.