The Murmuring Forest
Enter the Jungle. Use the Psychic Service to go to the Courtyard of Rain. Open the chest, defeat the enemies, and talk to Selkie to cast a spell on you.
Go back to the entrance and use the Psychic Service to go to the Forest Ruins. Go to the Lower Left to have the faeries teleport you to the Entrance.
Use the Psychic Service to go to the Forest Ruins again and this time go Up. Talk to Selkie and have the spell removed. Offer to help Selkie.
Go Down to the save room and go to the Lower Left. Watch Escad beat up the Faeries. Talk to him and go keep going Left.
Tell the Punkmaster that you want to fight, then defeat him.
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.