After obtaining Karn, the first area you should visit is the cave to Bleak. So stock up on any supplies you need, rest up, and save at the Dragon Shrine. Exit town and head into the cave.
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Head down the staircase near the entrance of the cave. Downstairs, unlock the door south of the staircase. Now head on straight east, past the staircase you see, until you hit a wall. From there, head up north until you hit a wall. At that point, go west. You should come across a fork with a path going north, while another heading sort of west. If you remembered from last time, the path heading west had a locked door. You can now unlock that door with Karn, so head west. Unlock the door, and open the chest you find for a Dart. Be sure to equip it on Karn. Head on over to the exit on the first floor of the cave, which leads to the Bleak region. Instead of heading south and exiting, head north and follow the path to find a locked door. Open the chest you find inside for a G. Bar. DO NOT SELL THIS- you will need it soon. If you continue on, you'll find a weakened wall- which you cannot break yet. Keep following the path to find a switch, which you should press. It will open the gate, letting you exit the cave.
You've come up with some pretty nice items. However, your treasure hunting is still not complete. Head to Winlan.
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Head into Winlan Castle's basement. Remember the locked door by the eastern bridge's entrance? Open the door and grab a nice treasury of aCure, Life2, Life, FlameRP, Turban, and BrokenSD. Even though the FlameRP can be equipped on Nina, don't do it. It does much more damage if you use it to cast a fire spell in battle. How much you ask? 90HP damage vs. one enemy. This may not seem like much, but it's definately much more useful than with Nina attacking with it. Have her use it as a substitute for the E. Key in boss battles (or regular battles if there is only one enemy). Equip the Turban ONLY if you want to give someone a pretty good boost in their agility. Otherwise, store it in the storage for later use- just in case. As for the BrokenSD, save it for boss battles. The Rang is much more USEFUL during random encounters. After you've got everything set, warp to Romero.
Go back to the area where you got the map. If you forgot, it's the eastern house in the middle horizontal row of houses (the item shop is in this row). Go down the hole you find in the house. You should find a safe. Open it with Karn. Talk to the guy here to learn about this guy in Bleak. You can't get to him yet, but keep this in mind. Head to Aqua.
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Make your way to the floor where you fought Wisp. It should be easy to climb the tower, since you have Karn, who can open all the locked doors. At the top, head west of the staircase and unlock the locked door. Take the floating platform, and follow the path to find a chest containing a FlameSH. Equip it on Karn. Head west of the chest and go up the staircase. You'll appear at this shrine place. If you head up and then look to your left and right, you'll spot two Dragon Statues (they don't look like the ones at the Dragon Shrines). Search the areas in front of them for a LifeAR and IcyDR. The IcyDR can be used in battle, but it's better to equip it on Karn. The LifeAR can be equipped on Ryu, which boosts his defense GREATLY. If Ryu previously had the ThiefCL on, equip it on Karn. If you enter the building, you'll see some weird machines. You can't do anything here right now, so exit.