After checking out the meteorite and helping find Picky, you learn of your destiny to stop the evil Giygas. You must go to Your Sanctuary in Onett to proceed, but the path is blocked.
Go outside and the sun will rise. Go back to your house. Before you can go in, you're stopped by a photographer who asks you to say "fuzzy pickles" for the camera. After that photo shoot is done, go into your house. Talk to mom to rest, then call dad to save the game.
Before you continue, you can go to Lier X. Agerate's house if you want. He has found something interesting.
Pick up Some Equipment
You can get a Town Map in the library. Talk to the woman at the counter to get it. The map will work in other towns as well.
When you are walking in town, open any trash cans that you find, because some of them have items that you can use.
Deal with the Sharks
If you try to go to Giant Step, you discover that the Mayor has locked the door. If you try to visit the mayor, you find out that he is too busy dealing with the Sharks gang to talk to you.
The Sharks hang out in and around the local arcade. You can battle the Sharks outside, but you should upgrade your weapon and equipment first. To get a new hat, go to the treehouse northwest of the library, which you can enter by climbing up through the trees near the dirty kid. In the treehouse, talk to the kid wearing a baseball cap and he'll give you a Mr. Baseball cap that you can equip for more defense. Then fight dogs, birds, and snakes until you can afford the Cheap Bracelet at the drug store. Then fight more enemies until you can afford to buy a Tee Ball Bat. Sell your Cracked Bat.
After you have purchased that equipment, you can try to fight the Sharks outside of the arcade. You might want to reach level 5 before you battle the Sharks. Bring food with you in case you run out of PP to heal yourself.
When you have reached about level five or six, you can try to fight Frank, who hangs out in the yard behind the arcade. You will learn your first psychic attack, Rockin α, at level 8, but it takes a while to get to this level, and it isn't that much harder to defeat him without it.
Fight Your Way into the Arcade
When you are ready to fight Frank, make sure that you have some food in your bag, and go into the arcade. Defeat the Shark that attacks you, then talk to the Shark who is guarding the back door and tell him that you won't join, then defeat him. Afterward, you can go into the back yard and talk to Frank.
Frank has only a few types of attacks: brandish a knife, come out swinging, and say something nasty. When he brandishes a knife, it causes a lot of damage. Come out swinging is not as powerful. Saying something nasty will lower your guts stat, which makes you less likely to do critical hits (i.e. Smaaaash! attacks).
As mentioned earlier, this battle is much easier if you level up to level 8, because that's when you learn your first psychic attack, PSI Rockin α. You can defeat Frank without that ability, but it is more challenging.
If you don't have Rockin α, heal up if your HP is 30 or lower, and otherwise just attack until Frank is defeated.
Frankystein Mark II
Frankystein Mark II will alternate between generating a burst of steam (which has no effect) and attacking. Heal up during the first turn if you need to. After that, heal if your HP is 15 or lower.