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Ahh, the big city! Try not to get lost in the maze of houses Ellay sports; if you do happen to ask for directions, though, you may be find yourself in a battle with the notorious Bla Bla Gang, a group of hooligans who have a terror hold on the city, led by a fearless punk named Teddy.
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Bla Bla Gang members aren't terribly difficult after your swamp venture and don't leave a wealth of Exp. While it seems best to avoid them, they drop rare Flamethrowers, a super-useful item Loid can use to dish out some great PK Fire damage. Take advantage of the fact that the punks never disappear and reengage the punks multiple times until you have a good stock of Flamethrowers.
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There's a building in the southeast part of town that boasts live singing. Why not stop in and see what's going on? There's a person hawking tickets outside the door for a large price -- don't buy from him. Save your cash by buying a ticket at the Dept. Store, despite what the dude says about availability there.
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If you did the optional tank exploration in Yucca Desert, the old veteran is waiting in front of the Live House, barring access until you recompensate for the tank. Luckily, he'll only ask for a fairly small amount of cash.
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Show the girl your ticket to get inside. Mind your conscience, too: if you accept to have a drink, the fuzz shows up and will take you to the Police Station. Ninten's weapon will also get confiscated from the ordeal. You can buy it back from the other police officer in the station, but it'll cost you the normal buying price to get it back.
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Talk to the blue man to sing on the stage. Your characters will start singing and dancing, so kick back and enjoy the show they put on!
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After your concert, you'll get approached by Teddy, the Bla Bla Boss. Angry that you beat up on his allies, he'll challenge Ninten to a fight. Don't worry, though: he ceases combat after three or so rounds.
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Teddy will appraise you now as a competent group of fighters and will ask you to join him to seek revenge for his lost parents who died on Mt. Itoi, a large mountain nearby. He'll take Loid's place in your party as well as his items.
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While you may be hesitant to leave Loid (especially after getting those Flamethrowers!), as soon as you get into combat, you'll see what a superb addition Teddy is to your side. His attack and defense grow at phenomenal rates, making him your prime fighting force. Take him back to Magicant to equip him with the best defensive gear and get that Sword you've been saving for so long out of storage -- Teddy will put it to good use.
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There's another side quest here if you're interested. The reward isn't very useful at all, but it's fun to do. To start with, you'll want to buy some Strawberry Tofu from the local Dept. Store. 3 Tofus are needed to get everything on this journey, but if you can't afford it or don't want to spend it, one or two are just as fine.
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Head to the northwest part of Ellay along the path to reach the View Tower. A man inside seems to have noticed smoke coming from a far-off island while looking out at sea. Ride the elevator to the top of the building to get outside.
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If you look through the leftmost binoculars, you'll see something sparkle, then land right in front of you. It's a rocket! Walk over and climb inside to be blasted to the island in the horizon.
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Inside the lab on the island reside a famished doctor and his two assistants, Able and Baker. Each want to try the legendary Strawberry Tofu and will reward you if you supply the delicacy. The Doctor will give you Words of Love while Able and Baker give Swear Words and some information about an odd robot on Mt. Itoi.
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The two word items don't actually do anything, and they can only be used in battle. It's sort of a waste, but sometimes it's fun to break down and express your feelings to the enemy colorfully.
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