You can reach Daguerreo as soon as you have access to the Hilde Garde III on Disc 3 (or have obtained the Sky Ability for your Chocobo) and can fly to the location. Daguerreo is located on the largest island (called Sacrobless Island in the menu screen) in the southwestern corner of the map, just south of the Forgotten Continent. Use the map and the screenshot below to help you find it:

Daguerreo's location on the world map
Daguerreo from the Hilda Garde III

To start things off, search the far right side of the screen along the watery pathway to find the Capricorn Stellazzio. Continue through the doorway on the right side to find the Four-armed Man who used to be located in Treno. The Four-armed Man will tell you that he is a treasure hunter and will assign you a treasure hunter rank. If you have been following this guide and have picked up most of the hidden treasures you will receive the highest rank of “S”. The Four-armed Man will then run away.

Entrance screen of Daguerreo
Picking up the Capricorn Stellazzio in Daguerreo

You can find him near the entrance - speak to him again to receive the Rank S Medal Key Item.

Note: The Treasure Hunter rank is determined by how many hidden chests you find, every field icon you locate, items gained during event sequences and items purchased in the Treno Auction house. You also receive points for finding all of the Chocographs by completing the Chocobo Hot & Cold side quest. Check out the Treasure Hunter side quest page for more information.

Zidane speaking to the Four-Armed Man
Picking up the Rank S Medal from the Treasure Hunter side quest in Daguerreo

Ride the elevator up to the next level. There is moogle in the bottom right corner of the screen named Noggy that you can use to save your game if needed. The man behind the desk is the Synthesis Expert - speak to him to see the Synthesis Shop which has a ton of great items available including:

Angel Bless
Cotton Robe
Silk Robe
Magician Robe
Glutton’s Robe
White Robe
Black Robe
Coral Ring
Magician Shoes
Power Belt
Madain’s Ring
Fairy Earrings
Reflect Ring
Feather Boots
Black Belt
Pearl Rouge
Promist Ring
Battle Boots
Rebirth Ring
Angel Earrings
Thief Gloves

Make sure that you pick up a Sargatanas for Zidane, Glutton’s Robe for Quina if Quina is in your party and a pair of Battle Boots. The Thief Gloves are quite expensive to make and you likely won’t have the supplies so don’t worry about picking that item up for now.

Exit this room by going through the doorway on the left side of the screen on the upper balcony. There is a pile of books on the right side of the screen. Approach them and a field icon will appear. Press X and Zidane will read the titles of some of the books (enabling the next step). Speak to the Young Man and the Sales Clerk and they will tell you that they are having an argument about “I Want to Be Your Canary”. Speak to them a few times and continue to either agree with the Sales Clerk or the Young Man. Agreeing with the Sales Clerk will get you the Meteor Card (which is a better item) while agreeing with the Young Man will get you a Flare Card. The Item Shop has the standard consumable items that you have seen before.

Speaking to the Synthesis Expert in Daguerreo
Speaking to the young man on the second floor of Daguerreo

There is a strange looking pedestal to the left of the item shop. Press the button to activate the Aquamarine maker on the bottom level. It takes 4 Ore items to make 1 Aquamarine. You can speak to the Librarian and he will offer to allow you to use the hammocks in the library to rest for 100 gil. The man beside the Librarian will talk about a book that he is looking for and will move out of your way once you speak to him (if you looked at the pile of books on the opposite side of the room). Walk down the pathway that opens up behind him and go down the ladder.

There is a man on this balcony who will offer to allow you to change the name of your character if you have a Namingway Card in your inventory. Continue all the way to the left side of the pathway to find an Elixir. The stairway on the right side of the screen also has a hidden Elixir. Return to the middle of the balcony and choose to return to the second level when you are done. Head back to the entrance from here.

Zidane on the second floor of Daguerreo
Picking up the Namingway Card from the man down the ladder

Take the pathway leading left into the room shown in the screenshot below. If you speak to the Weaponsmith on the top level he will explain that they lift on this lower level needs to be fixed before he can open up shop. Pull the Left Lever on the back wall twice and then examine the small hole on the wall in behind the platform that lowers. Grab the rod to the right of the levers and have Zidane place it in the hole. Pull the Right Lever twice and then jump on the platform and it will carry Zidane to the upper level.

Fixing the elevator in Daguerreo
Sticking the rod into the elevator

Speak to the Weaponsmith and you can now access the shop. He sells:

Mage Masher
Mythril Dagger
Zorlin Shape
Rune Blade
Tiger Fangs
Mythril Racket
Asura’s Rod
Octagon Rod
Rising Sun
Bone Wrist
Mythril Armlet
Magic Armlet
Chimera Armlet
Egoist’s Armlet
N-Kai Armlet
Jade Armlet
Venetia Shield
Defense Gloves
Lamia’s Tiara
Twist Headband
Golden Hairpin
Diamond Helm
Gaia Gear
Demon’s Vest
Demon’s Mail
Diamond Armor

Note that visiting this shop on Disc 3 is your last opportunity to purchase the Rune Blade and the Obelisk which are both responsible for teaching them abilities that they cannot learn elsewhere. Make sure that you pick up one of each before you leave.

Using the Ore to Aquamarine converter
Zidane outside of Daguerreo on the world map

Don’t forget to place as much Ore as you would like in the Aquamarine maker on the main level before you leave. It takes 4 Ore to make an Aquamarine. That is everything that you can do in Daguerreo. Lastly, you can complete the side quest to obtain Excalibur for Steiner. That's everything that you can do in Daguerreo.