The town of Dali is located to the west of the Ice Cavern exit. There are a few optional areas that you can visit before traveling to Dali - check out bottom of the previous page (Ice Cavern) for more information.
There is a fairly lengthy story section that occurs as soon as you enter the town. Once the dialogue has concluded, the game will continue with Zidane in the Inn all by himself. You can activate two separate Active Time Events (ATE) - “Vivi, Confused” and “Dagger Tries” as soon as you wake up.
You’ll have to wait to watch the second ATE until later on as you can only select one at this point. The one that you do not select can be watched later.
There is a chest in the lower-right corner of the Dali Inn room that contains an 
Antidote. There is another chest on the left side of the screen hidden behind the plant that contains a 
Potion. Exit the room.
You can watch the second ATE after you exit the room. Speak to Gumo, the Moogle, and save your game. You have a letter for Gumo from Mois so make sure that you select the Mognet option as well. Exit the inn and watch the next ATE (“Cat’s Eye”) before continuing.
Your Lucky Day
There is a ‘game’ you can play in the room with the beds in the inn wherein you will be given a Color Fortune. You will automatically receive the Your Lucky Day Trophy if you receive the “Very Good Omen” while playing. It costs 10 gil to play and it is entirely random.
The entrance to the Weapon Shop is located directly across from the Inn. You can purchase the following items:
Dagger
Mage Masher
Broadsword
Iron Sword
Rod
Mage Staff
Wrist
Leather Wrist
Bronze Gloves
Leather Hat
Feather Hat
Rubber Helm
Bronze Helm
Leather Shirt
Silk Shirt
Bronze Armor
Through following this guide you should have nearly every item listed except for the Feather Hat and a potential shortage of Leather Wrists. Don’t sell the items that you have managed to acquire up until this point as you can use them in Synthesis Shops later on in the game.
Just north of the Weapon Shop entrance near the wheel on the ground you can find 120 gil. Vivi is standing near the ledge on the north side of town. Approach him to speak with him and continue the story.
You’ll be given access to two more Active Time Events once the scene with Vivi has ended (“Cat’s Eye 2” and “Dagger Tries Harder”). The second ATE will appear as soon as you transition to a new screen.
Dagger can be found inside the Weapon Shop after you have watched the “Dagger Tries Harder” ATE. Dagger will then head back to the Inn.
Meet Dagger back in the room of the Inn and speak to her to continue the story. You’ll have to watch one more ATE called “Queen Brahne’s Steiner”. Dagger and Zidane will decide to go and look for Vivi afterwards. Travel over to the Windmill which is the building to the left of where Vivi was standing and another quick scene will occur.
Enter the Windmill and search behind the pillar. On the wall is a hidden item called the Aries Stellazzio. The Stellazzios are involved in a side quest involving Queen Stella - each Stellazzio that you collect can be turned in to receive a prize.
Approach the grey dome-like object near the entrance and the field icon will appear allowing you to open the latch. Choose to “Go down” when prompted.
Movie Critic
In order to obtain the Movie Critic Trophy make sure that you have viewed the following ATEs:
Continue down the pathway and take the small elevator to get down to the lower level. There is a treasure chest towards the front of the screen that contains 156 gil.
Proceed down the pathway into the next area for a short cutscene involving the factory workers who have captured Vivi. There is a hidden treasure chest in the tent that contains a Potion. There’s also another treasure chest towards the bottom of the screen that contains 
Eye Drops.
There’s a Moogle named Kumop hiding in the barrel in this next room. Select the Mognet option and Kumop will give you a letter to deliver to Mogki. Don’t forget to save your game!
Walk in behind the barrel where Kumop is hiding and jump on the crates at the back of the room. You can get all the way up to a treasure chest that contains an 
Ether.
Stand next to the crank near the exit at the back of this room and kick it to drop the last treasure chest down from the roof. This one contains a Potion. Keep going in to the next screen.
Go up the first set of stairs that you pass, walk onto the chest and then follow the pathway around to pick up a treasure chest that contains an Iron Helm.
There is another chest on the ground level just a little further past the stairs that contains a Leather Wrist. Move on to the next room to find Vivi and continue on with the story.
Zidane and Dagger will find Vivi trapped in one of the boxes. He will rejoin your team after Zidane and Dagger help break him out.
Equip Vivi with one of the Feather Hats that you purchased but only if he has already learned the 
Fire spell permanently from the Leather Hat (he most likely has by now).
The chest on the north wall near the large door contains 95 gil. You now have two options available with regards to the door at the back of the room:
Phoenix Pinions from them and level up your characters slightly. There are also a few hidden items in the room behind the door (
Phoenix Down, Potion and Phoenix Pinion).There isn’t much left to the underground area though so don’t be too concerned with enabling encounters - either way, the choice is entirely yours. If you do choose to open the doors you will immediately be thrown into battle against two Ghosts.
The three items are hidden in treasure chests with one of them being hidden well behind the machine on the right side of the screen (the Phoenix Pinion). Exit the area and continue down the wooden pathway to the right side of the screen.
The story continues with Steiner at the top of Observatory Mountain. Take some time to properly equip him for a battle that is coming up. You can equip him with the Iron Sword but you may not want to if he has not learned the 
Beast Killer ability from the Broadsword yet.
Have him equip the Bird Killer ability in preparation for the next boss battle. Follow Morrid down to the lower level of the Observatory and back into his house. Attempt to leave the Observatory area after Morrid tells you that the Cargo Ship has arrived.
There are a few more quick scenes involving Steiner and the rest of the party before you’re thrown into the next boss fight.
Level: 6
HP: 1,030
Black Waltz 2’s mission is to return Princess Garnet / Dagger to Alexandria Castle which means that it will not attack Dagger - it will only attack the men (Zidane, Steiner and Vivi). Dagger can focus all of her efforts on healing the other party members with her Cure spell.
Black Waltz 2 will use a Sleep spell on Dagger if she is the only remaining party member and this will end the battle (with a Game Over screen).
At some point in the battle Black Waltz 2 will shout “My mission is to take back the princess!”. From this point on it will begin countering Vivi’s magical attacks by using the more powerful version of that spell (responding to Fire with Fira for example) and using it on all of your party members.
This is a counterattack and does not take up Black Waltz 2’s turn so you may want to avoid having Vivi cast any spells later on in the battle if it is causing too much damage to your party members.
Steal:
Steepled Hat (common)
Leather Plate (uncommon)
Drops:
Ether
A video of the battle is included below:
Once the battle has concluded you will be given the option to either “Rest at the inn” or “Depart now”. Choose to “Rest at the inn” to heal up your party and then to head back through Dali one last time.
Travel to the Weapon Shop and purchase as many Wrist armors as you can. These Wrist items are used later on in order to do the Cotton Robe Synthesis Trick which allows you to synthesize the Wrist into 
Cotton Robes to turn a large profit. Sell Ethers if you need to (which sell for 1,000 gil) and stock up fully on 99 Wrists.
Travel back to the farmer’s field where the Airship is docked and board the Airship to continue the story.
