As soon as you enter Lalivero, you'll find two guards to the city lying on the ground injured. Iodem will talk to them and discover that Sheba was with Saturous and the rest and that they went through town destroying whoever was in their path. Once that's over with, head to the Inn in the northwestern part of town to heal all of your party members. Once you're done, head out the inn and locate the weapons and armor shop in the southeastern part of town. Buy the latest upgrades for all of your characters, but don't exit the shop. See that ladder in the back? Head up that to arrive on the roof. When you arrive on the roof, hop over the gate on the right. From here start to head north until you reach the northeastern corner. Jump the building a little south of that and across the next building. Go up the vine and check the jar on the left to get some Water of Life. Now head back down the vine and back across the gap and onto the gate again. Go around the northeast corner and start heading west. You'll see the Djinn on top of the roof, but go a little past that to the next building where you can hop onto. Do so and then hop across to the building with the Djinn and then up the vine. Go up the Djinn to get the Mars Djinn Torch without a battle. Now, head back from whence you came (11) all the way around the city gate and back down the ladder in the weapons shop. Now, head to the building in the southwestern part of town that also has a ladder on top of it. Go in the building and climb up the ladder to arrive on the roof. Hop onto the gate and start moving counterclockwise. After going over the gate the city you should see a vine going down leading to a treasure chest. Open this treasure chest to get a Warrior's Helm. Head back to the building and go down the ladder and out of the building. Now, head out of Lavlivero via the path to the north. Right above Lalivero is Babi's Lighthouse.