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If you tried to visit Giant Step earlier, you'll know that the cabin leading to it was locked because of Frank and that the mayor has the key. Go to city hall (in the center of town), head for the second floor, and talk to the mayor. Provided you promise not to get him in trouble, he'll hand over the Key to the Shack.
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Now make for Giant Step and use the key to unlock the shack door. After you unlock it, talk to the guys in red again and one of them will give you the Travel Charm. Now you can go in and start making your way through the first challenging area of the game. Make sure you're stocked with five or six Hamburgers and have completely full HP and PP before you enter.
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There are three different enemies inside the cave. Attack Slugs attack at up to six at a time but are extremely weak. Single them out for easy experience and use Auto-Fight. Rowdy Mice are dangerous because they can SMAAAAASH you for 10-13 HP of damage, but they always attack alone. The most dangerous enemy is the Black Antoid, which will usually pop you for 10-13 HP each turn. When faced with a mixture of these enemies, kill Antoids first.
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There is a little point during which you step outside of the cave as you're making your way through it. Here, you can find an infinite supply of Magic Butterflies, which restore a sweet 20 PP each! So if you don't see a butterfly when you step outside, or if you've already collected it, pop back in the right-hand entrance and then back out and repeat until your PP is full! This is very helpful for the battle against the upcoming boss.
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Keep going and you'll find the first "Your Sanctuary" boss. Fire off PSI Rockin α until you no longer have enough PP to use it. He'll suck the rest of your PP out with PSI Magnet, so you have to rely on food to keep your HP up. After your PSI assault, bash him and eat every time your HP dips below 50 - his biting attack can do 45 HP of damage. The rest of his attacks don't harm you. If you run out of food, just bash and hope for luck.
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Now you can go beyond the door and out to Giant Step, the first "Your Sanctuary" location. The melody will play and your Sound Stone will record it. Now you need to head back down to Onett, but don't worry - after you defeat a "Your Sanctuary" boss, all the regular enemies will run away from you and you can surprise attack them! This is a great way to gains levels if you use it to your advantage.
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