Following the ill-fated truce with Emperor Vandole, you defeat Mech Rider 2 and escape with Flammie.
Help Kakkara Village
Now that you can fly around with Flammie, there's something you should do before you go to the Lofty Mountains like Truffle said. If you talked to King Amar in Kakkara Village after you put the Fire Seed back, he said that the water would only come back if you brought a Sea Hare's Tail. Now that you have Flammie, you can get a Sea Hare's Tail.
Use the Flammie Drum to summon Flammie. The drum is in your inventory where your healing items are, such as Chocolate and Cups of Wishes.
When flying on Flammie, press Start to see the world map. First you see it as a globe, then you can press L or R to switch to the flat map view (which takes a while to load). Go to the flat map view and you will see a small island to the west of Matango. It's south of the desert. Press B to exit the map view. Fly to that tiny island and land on it.
This is Turtle Shell Island. You can go into the smaller huts to meet the villagers. Go into the biggest hut to find a merchant whose business is not doing well. The merchant gives you a Sea Hare's Tail for free.
Fly north with Flammie and find the village in the desert. Land there to enter Kakkara Village. Talk to King Amar, who is standing above the empty pond. You'll automatically give him the Sea Hare's Tail. Water will magically return to the village, and Amar will give you a Moogle Belt in return. This item will turn you back to normal if you get Moogled. Or you can use it to turn into a Moogle if you really want to.
As King Truffle said, the Lofty Mountains are southwest of Matango. If you're flying from Kakkara Village, you have to go south and slightly east to get there. First look for a tiny village in the mountains. Land there. Upgrade your armor in the shop. If you feel like it, go north to the temple and check out the "veedios" left behind from the time of the Mana Fortress war.
You can reach the Lofty Mountains from Mandala. Just go south of the item shop, and go south past the southern bridge to reach the mountains.
If you want to reach the Lofty Mountains by flying with Flammie, then fly south-southeast from Mandala. There is a grassy patch in the middle of the mountains with what looks like another temple above it. Land in that empty grassy patch. You're now on the Lofty Mountains.
There is a cave entrance near where you begin on the Lofty Mountains. This cave entrance leads to the Palace of Darkness. You can go there now if you want some more Mana Power and new magic, or you can save it for later.
Go east from the cave entrance. You will encounter a lot of Bomb Bees and Trap Flowers on the mountain. Go up the stairs, then go up the next set of stairs and go north to the next area.
Go east until you reach some stairs. There is an Eggatrice there. Kill it, then go up the stairs. Go west past the monsters until you reach a whip post. Use the whip to go to the left. Go up the stairs to the west. Go east and you will soon reach another whip post. Use the whip to go to the right.
Keep going east until you reach more stairs. Go up, then go west and use the whip to go across. Sometimes Neko appears between the two flowers between these whip posts. If so, feel free to go down there and talk to him to buy things or save the game. Then go back up to the whip posts above Neko and use them to go to the left. Go west and up the stairs, kill the Eggatrice, go up the stairs to the right, and go into the cave.
Go north and up the stairs, then talk to the bird guy. This is Jehk, who tells you to scram. He says Joch is on the Gold Isle, which is to the northeast.