At the gate to town, you'll find a saddened child guard. His sadness is the same as all the residents of this town. All that is left is a large group of children without parents.
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By asking around, you'll learn that all the parents of this town were abducted by an odd ship. This story coincides with Ana's, where her mother was taken. The activity seems to be coming from a mountain to the northeast.
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If you explore the town, you'll learn about a child with odd abilities. Finding the house, you'll find the Garricksons guarding the baby.
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Talking with the baby is useless, of course, as it still hasn't learned how to talk. However, if you talk through your mind, the baby will teach you how to Teleport! This skill is super-useful to travel between towns.
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The store in Youngtown is still up and running. Buy Loid an Air Gun, as it will raise his Offense a bit (and every bit helps!).
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The Innkeeper, like all other adults, is gone. In his place is his son, generous enough to let you stay for free. Be sure to exploit this as you level up around Youngtown.
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It's best to level up here a while, as the foes in the next area gain a significant level of difficulty. Getting Ana to level 22 would be ideal, and the extra PP helps a lot. If you're in a hurry, though, it would be best to train until Ana learns Super Healing: it revives fallen comrades!
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If you find yourself in a pinch, don't hesitate to use the Onyx Hook. You can now get free reviving and healing from Magicant without having to trek all the way back to where you were since you now know how to teleport.
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