Azado
Upon entering Azado, the party somewhat congratulates themselves. Take a bit of time to explore the town before taking Ronfar's advice about going to the Azado Sanctuary right away. You'll find a Life Jewel in the southwest corner of town and a Safety Helmet in the first house on the left from where you enter town. There is also another chest holding an Angel Ring, but you can't get to it just yet. Once you upgrade your equipment (at this point, if you haven't got enough Silver to buy what you need, I would HIGHLY suggest going back to Sluice Forest and earning some. It will be quite the long haul before you get the chance to upgrade your equipment again) and have talked to the townsfolk to at least get the jist of what is going on, head North to the Sanctuary Entrance.
When you finally go to enter the Sanctuary, Ruby is utterly amazed at the size of the goddess' Statue. However, Ronfar and Lucia seemingly have mixed emotions about it. So anyway, enter the Shrine and chat with the priest who's in front of the Goddess Statue. He is very rude at first which Ruby has no problem pointing out. He finally says his name is Jamil, the high priest of Azado...which doesn't agree with Ronfar who remembers the high priest being Balse. After the 2 catch up on old times, Jamil tells the party that Balse was "demoted" and where to find him (in the town's only Red Roofed House).
So, leave the Sanctuary and head back to find this house. When you get there, talk to the boy in front of the house. Ronfar recognizes him as Balse's son, Porom (where's Palom? :P). After a funny comment set between Ronfar and Ruby, Balse comes outside and invites the group in for a pow-wow. Once Balse is done speaking, chat with him again...this time he spills everything. Apparently, Mauri showed up 1 year prior with Althena's "Holy Fire". Since Balse didn't agree with Mauri's methods, he was swiftly removed from the priesthood. Ronfar has a seizure over Mauri about this point. Talk to Balse again only AFTER saving your game and making sure that Hiro and Ronfar have thier affairs in order equipment-wise. When you DO talk to him, he invites you to stay the night. Choose "Alright, let's take a break." and the scene is over... for now.