When you first enter this town you'll find a tree that looks like a man and is spooking everyone in the town out. Well, the deal about the tree is that it was cursed by the big, evil, dieing tree in the forest that you'll travel to later. Head into the Inn to restore all your stats, then to the weapons shop not too far from there. If you were clever you would have noticed that there's a statue in the center of town that you can move. This statue leads to an underground tunnel. However, you're not going to be able to get the Djinn down there by this entrance. Instead, head to the Northeastern part of town and take a walk on the wooden logs that make up the fence of the town. Make your way all the way to the western part of the town and whirlwind a leaf covered entrance. Go down the ladder, and move the statue back using Psynergy, then hop across and press A to the Djinn to get it (no battle required this time.) You now have the wind Djinn, Gust.
Come back all the way from whence you came (5) and proceed to the north part of town. Go up the large stairs and arrive at the town castle. Talk to the guard on the left and he'll let you in. Keep heading forward to arrive at Lord McCoy's chambers. He'll offer you the key to get past the Barricade he set up to block passengers from going to Kolima forest, but then he decides that he doesn't want to send warriors so young to their "deaths" so he retracts his offer. However, thanks to another guard leaking some information you discover that the barricade was very hastily built. Head out of town and you're now on your way to Kolima forest.