Your first goal is to gather 3 gold coins and buy a birthday gift for your sister. This quest is supposed to show you how flexible the game is, so there are several ways of solving it.
Behind one of the cottages you will find a couple, obviously making out. Talk to the man, he's cheating on his wife. You can agree to keep your mouth shut for an amount of money (evil solution) or go to the betrayed woman (she's on the main square of the town) and tell her the truth. The first gold coin will be yours either way.
You can get the second one from the man asking you to guard the barrels. Be a good boy and do the job or listen to the little shuck and destroy them all. You won't be getting any money for the second way, though.
You will meet a girl who will ask you to find her teddy bear. He's being, uhm, held captive by a little guy in the eastern part of the map. He's having a problem himself, being threatened by a malevolent bully, whom you can support by hitting the other fella, taking the teddy and giving it to the bully). The other option is to hit the bully and take the teddy bear to the little girl.
Once you have enough money, buy chocolates from the local trader and go to your sister, playing in the field. When you give her the gift, all hell will break loose.
Oakvale has been attacked by a group of bandits. Find your father's body, indicated by a green dot on the map. There you will meet Maze, member of the famed Heroes' Guild. He will help you to safety.