Head to the House of Dorlin the Wise to progress the story. You’ll learn that you need to back to Zil Padon, so once you’re done chatting with Dorlin, Milda will say goodbye and permanently leave your party. Don’t worry. We won’t be alone long.
When you’re ready, head to Zil Padon.
Also, if you upgrade your Bone Splitter Axes and Shadow Swords, I recommend keeping at least 1 of each in the Stashing Place for Justin and Rapp. They’ll come in handy during the Tower of Temptation. Keep the Lightning Sword and Wrecking Ax as well.
Zil Padon
You’ll need to check out the fountain, so go southwest, but before you cross the bridge, head southeast to this bridge. You’ll check out the door, but can’t do anything. After some quick dialogue with a Mogay girl, you need to find the Mogay Elder.
Go north across the bridge, then go northwest, then southwest across the bridge and into the Mogay section. Head southwest under the arch, then go northwest, south, and northeast into the Mogay Elder’s house, where you’ll have a chat with Guido.
When the dialogue options come up, you must choose #2 to proceed, at which point, Guido will join your party!
Like Milda before, Guido can’t use magic and is just a temporary party member. He has some useful moves though, most notably the Mogay Bomb. His Sword level is really low, which will make for great boosting to transfer to Justin once he leaves. His Dagger level can be increased a decent amount as well, but the Throw level… not so much.
With Guido in your party, you can now converse differently with quite a few people in the town. If you visit Mogay House 1 (north-northwest of Guido’s House) in the Mogay Section of town, one of the Mogay folks here will prepare a “Green Medicine” that Guido gives to you — it’s actually a Blue Medicine, but that’s okay, it works!
Now… Before going to the Zil Ruins, you should visit the Hotel and get the stuff from Milda out of the Stashing Place. Put the equipment that you can on Guido, and sell off the rest as needed. After that, stock up on supplies at the General Store. Once we enter the Zil Ruins, we will not be able to leave and return here for a couple of dungeons.
After you’re completely ready, return to the fountain in the center of town and go down the ramp. Choose option 2 to proceed into the Zil Ruins.