The bedroom doesn't contain anything of particular interest. You can examine a few items and read a bit about Tiese's history, but there's not much point. Your other options are a door that leads out to a patch of light and a set of stairs that leads down one floor.
Heading out the patch of light will take you out to the town proper. The staircase leads down into a room below that holds more objects to examine but otherwise nothing of interest and puts you through another load screen before taking you to the street. With that in mind, ignore the stairs and save yourself a load screen or two. Here, the balcony holds nothing of interest. Climb the short stairs and you're on the street level. There's a door to Parin's right (which would on the left side of the screen). That's the door you would've come through if you headed downstairs first.
Now that you've got your bearings, it's time to scope out the town. Begin by heading in the direction Parin is facing, toward the bottom of the screen. The camera should pan around and you'll see her grandfather again, tapping his cane and looking very important. Beyond him, there's a set of stairs that winds around a wall with a hole in it. The hole is all you can admire right now. If you try to head left up the stairs, Parin will just randomly state that it looks boring. She doesn't like boring and neither do you. So instead, head back down the stairs and through the little plaza area, past the front door of your house and down a new set of stairs.
At the bottom, there's a row of buildings. The first is a bakery (it's labeled "Fan Cute Cakes" but you can ignore it for now despite the enticing name) and beyond that, you should see a woman named Pamela prowling the sunlit streets. She mentions that Puchu is making a lot of noise today while the men are all away in the mines. She wonders what could be prompting that.
If you head in the nearby door, you should see Pamela and another man wandering about while further toward the back of the room, a man named Disk stands behind a counter. He operates the store, which is called Disk's Discount Shop. When you're done chatting it up, he'll give you GOGGLES as a special gift, then tell you that they have to be equipped to be of any use.
Press 'Start' to bring up the Items screen, then highlight the goggles and press 'X' to equip them. Once you've done so, a checkmark will appear to indicate that they're in use. Now the damage Parin takes from water is cut in half. Plus, she looks astonishingly sexy. Disk sells other stuff too, but he charges a lot more money than you have presently so you can ignore his merchandise... for now.
You're about done in the store. Make sure that you talk to the other guy wandering around the room, if you haven't already. His name is Cylinder and he tells you that he wants to go on a date. That's why you should talk to him: because it's funny, not because it actually helps you accomplish anything of value. With Cylinder talked to, you've done everything you can in the store for now. Go ahead and leave the way you came in, then head back left to the bakery.
Inside the bakery, behind the counter, there's a woman named Fan. If you talk to her, she'll introduce herself and offer to be friends. Like sisters, she says. Talk to her again after that and she'll mention that strange things can sometimes happen around the town. Parin wants to know what, but Fan isn't ready to say just yet. Like sisters, my eye!
Anyway, you've done what you can in the bakery. Go ahead and leave, then head left and back up the stairs. Your grandfather doesn't have anything new to say, but there's a grated wall to his left. It looks like heavy iron bars holding a bunch of rock from falling. Examine it and Parin will remark how boring it is around town and that she wishes there were kids around. Suddenly, she hears a growl!
Look down the street and you'll see a girl named Pino. She's being threatened by a dog, Puchu. Parin saves the day, then learns that the girl is actually just a monster. Adults can't see her, even if dogs can. Parin decides to make friends with the mysterious monster. Just then, a young man--also a monster--named Puku invites them to the Monster Village. The way to the village is through the hole Parin's grandfather hasn't gotten around to fixing. The monsters invite Parin through and she hesitantly follows. Suddenly she's facing... the title screen! Oh noes! You'll watch an introductory little video and then the game continues from the Monster Village.
NEXT: Monster Village