Go to the Inn in the center of town and talk to Miss Yuka. You will need to give her the following items:
- Flat Seed
- Topple Cotton
- Animal Hide
- Baobab Wood
- Menos Bronze
- Rotten Meat
You should have found all of this stuff already. If not, keep battling and be sure to go to all of the item shops and talk to all of the merchants. Give her all the stuff, leave town, and return to the inn. Talk to the Birdie and it will give you a Revive Ring. Do not talk to the Birdie too much or it will explode and you will fail the Event.
Return home, talk to Lil' Cactus, go downstairs (watch him write the Event on the leaf), and go back upstairs to save your game before continuing.