The village has got a little more gloomy than before. Activate a teleport to the right. There's a chest with 7xMedals in here. Go through the bridge near the save point and talk to Peddler.
Boss - Mad Eye
This monster will summon skeletons to help him - three times, that is. Shine and Shina are essential here. You won't be able to deal reasonable damage to the boss until you defeat all the skeletons. When you finally get rid of his bodyguards, focus on physical attacks. The boss uses 2nd level magic, but fortunately deals small amounts of damage.
Enter the building near where Peddler was standing. Help the proprietor up and talk to him. You'll get an Ordeal Earring. You can now use the shop and rest here. Go to Fushira's house now. Go through the bridge to get near the save point and further towards the back of the screen. Go to Fushira's Workshop and read a letter.
You now have some time to look around the village. In Shu's house search through the lockers and you'll get +10 XP two times. In Kluke's house you'll see an Ancient Phonograph - mechanism that lets you play some music tracks from the inventory; also, there is +10XP upstairs. In Jiro's house you'll find a new spell - Lv3 - Heala (locker by the entrance) and +10 XP (desk upstairs). Also, there's a lot of minor items to be found in each house.
Get back to the save point and go all the way upstairs. You'll see two chests, containing 17xMedals. In the village there's one more house to check out (left of the inn). Some gold in there. Near the windmill theres a chest with 1xMedals. Touch the wall by the windmill to get Max HP +1 (seems that you could have done that at the very beginning of the game, huh).
That's about it. When you're ready, leave the village and go towards the passage to the east.