There's not a lot of things to do in Lama Temple except go up to the main building in the northwestern part of town. Before you get there, however, there's a Psynergy stone that you really don't need but can get if you really want it. Walk in the temple to start talking with Master Hama (who is a girl by the way.) She apparently has the power of anticipation. After a lengthy conversation she'll reveal to you how to make Ivan use reveal (bad pun.) Reveal is a very useful tool to find hidden objects, doors and other things in the game and is required crossing the Lamakan Desert. During this conversation Feizhi who was off to find Hsu and the others earlier will pop in and said that the transfer did work. Then Master Hama and Feizhi will rush off to Alpine Crossing where Hsu is trapped. You'll want to follow them, but before you leave town jump the small stream to end up on the east part of town. Use your new Reveal Psynergy to reveal a chest that contains some Water of Life.
Head directly east of Lama Temple to reach Alpine Crossing and to see the trapped Hsu. At first it appears there's no way to get to him besides going back through Altin, but once again use Reveal to open up a secret door. Pass through the small temple to reach the other side. Go up the rock and use Lift on it to free Hsu from the boulder. When you come back later the rocks will now be cleared and you can freely pass through Alpine Crossing. Once you save him you'll end up back in Lama Temple where the characters go on and on and on about whether or not Master Hama looked at Ivan. Sheesh, what bad storytelling. Leave the Temple Area and head southwest to reach...