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The Peaceful Rest Valley presents the first truly tough challenge you will face. The enemies here are tough and it's a long, winding road, and it's easy to get worn down. Before you return to use the Pencil Eraser, sleep again at the hotel to power yourself up, and make sure you have at least two Teddy Bears handy. A few Hamburgers can help, too.
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Before you go into Peaceful Rest Valley, or any other dangerous place in the game, deposit most of your money into your ATM account. If you are defeated in battle along the way, you will be sent back to the last point at which you saved. You will keep the exp. you earned, but your cash on hand will be cut in half. The cash in your ATM account, however, will remain the same. So don't take chances with your money!
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Try to avoid the moving tree enemies. They're Territorial Oaks, and although not tough to beat, they'll burst into flames when you do defeat them. This will destroy any Teddy Bears you have and/or deal you mortal damage. You can still survive as long as the YOU WON! message comes up before you run out of HP, but it's not worth the trouble. If you do get involved in a fight with it, run away. It might take a few tries but don't attack it!
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The other enemies in Peaceful Rest Valley are tough but manageable if your level is around 15 or so. The Lil' UFO will dodge many of your Bash attacks, plus PSI Rockin' doesn't work on it very much. Save it for last if you can and dispatch enemies that are easier to defeat first. The Spinning Robo can do a lot of damage, so try to destroy it first. Also, both enemies can give you a cold! Use a Cold Remedy or Healing α if they do.
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Mobile Sprouts are good enemies to pick on for exp. at this point because they're fairly weak, but beware! Their PSI Magnet can quickly drain your vital PP from you. If you have a Teddy Bear, though, it will usually harmlessly absorb the magnet attack. Also, Sprouts tend to hang around with Territorial Oaks, so be careful when approaching them.
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Make sure you get the Hard Hat. This is an extremely valuable defensive item. After you cross a bridge, the path will lead you northward and then split to the left and right. Go left here and walk a little ways and you will find a present with the Hard Hat inside. If you're out of inventory space, sell or drop the Mr. Baseball cap. Make sure you equip your new item!
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If you bought the For Sale Sign from the guy in Burglin Park, you can use it to sell your items off whenever you want. By this point, you'll probably have a few items that are just taking up space, so try using the For Sale Sign to get rid of 'em!
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Use the magic butterfly trick to keep PP up. There is a magic butterfly just before the left-right fork in the road that will re-appear if you leave that screen and return repeatedly.
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When you're almost to Happy Happy Village, you will see on your right an isolated cabin. You can't reach it now, but it will be important very soon. Keep it in mind.
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