The village has been attacked. Talk to Bevil and Amie and take your equipment out of the chest. Enter Daeghun's room, you'll find Arvoreen's Amulet of Aid in there. Arm your character and level up your companions. Go down. You'' be attacked by three monsters. Defeat them and grab the stuff from the desk. Leave the building.
Talk to Merring. He'll bless you and tell you to report by the bridge (1). Defeat any enemies there and speak with Georg. You now have to gather some men to defeat the enemy's main force.