Balamb Garden / Balamb Town
Once you are back at the Garden you can continue on with the story, but make sure to hit the save point first. If you have any interest in Triple Triad card game (and I highly suggest that you do play the card game on the side to earn some very nice rewards) you now have the Ifrit Card which will help you defeat some of the local card players and obtain some nice cards. You can obtain the MiniMog Card at this point as well as the Quistis Card.
The story continues after you make your way back to your dorm. Hit select while standing close to the bed and you will be given the option change into your uniform. Make your way towards the from of Balamb Gardens and the story will take over once more along the way.
Take your little car and drive over to Balamb town.
Walk down to the docks and hop on the boat. You will have to talk to everyone on the boat in order to continue the story. Once you have talked to everyone you will have a new option presented to check what’s going on outside. The window is right beside Squall.