Go along Main St. to the west until you meet Elle. After the conversation you receive a walkie talkie.
You will find the Child's Drawing #8 behind a billboard. Go west and turn south at the crossroads. Go along River View Road until you notice the road leading to the west. Cross the bridge and go to the door leading to the Junkyard.
Find a hole in the fence and squeeze through. Go along the building to the crack. Squeeze through and enter the building.
After the conversation with Curtis you will receive a MK32 Handgun.
Go behind the counter and take a Pistol Ammunition. Move to the room behind Curtis and take Junkyard Map from the washing machine.
Take a Health Drink from the refrigerator and a Pistol Ammunition from the red oven. Save the game.
Leave this building through the west door.
Go right to reach a hole in the fence. Squeeze through it and watch the dog run in from the right side. You can run and quickly leave the Junkyard or you can kill it with your gun or knife.
Shepherd's Den Streets
Cross the bridge to meet the new enemy - Smog. It's hard to kill him with a hand weapon - you will have to use a gun instead. Shoot at its lungs when it leaves them unprotected.
Xbox 360: For the first Smog killed you will receive Clean the Air achievement (10 p.).
Go back to the cemetery. Be careful when you get to Main St, there is a dog near the building marked as SGPD. There are also some goods near this building: First Aid Kit and Pistol Ammunition.
There is another Feral near the parking lot, kill it and enter the cemetery.