So, after finishing up the checkerboard battle in the last episode, we move on to fight Willard and his rat and ooze friends. "Willard" is a reference to the Willard and Ben movies (about a guy who befriends rats and murders people with their help).
Anyway, after finishing up the battle - I played through several times and leveled up here off-screen, as it's a great grinding point - we pick up the running ring by Creed's desk. Then we choose Karna out of the four potential recruits - We can come and grab the other three characters later (after fighting a certain evil demon in a desert somewhere).
After that, we return we head to the Dwarf Cave, where the fairy helps the sick dwarf. We then head for a reunion New Granseal, and the head eastward on our way to North Parmecia. A battle ensues, but we will resume there in part 10. Thanks for watching.