You start in 2nd floor of the castle. Go N to meeting room for another scene with Svala, then exit the castle for a scene at the inn. Next chain has been found at Castle Valette. To get there, take E exit of Kolton to the teleport pad that usually leads to Cobasna. Well, it still leads there, only this time you can choose another destination - Castle Valette.
Make your party Capell, Aya, Komachi and Rucha. Then check your items to see if you're stocked on revival items, and status-curing items (especially charm!). Head to Valette.