Bone Village & Sleeping Forest - FF7 Walkthrough
Fort Condor Battle #10: The 10th Fort Condor Battle is only available for a short time, once you use the Lunar Harp in the Sleeping Forest there will be a different battle available.
Bone Village is found on the northern continent on the World Map and you'll have to ride the Tiny Bronco to reach it. If you're having trouble locating it use my screen shot above or the map location below for some extra guidance.
Despite it being such a small town there is quite a bit you can do inside of Bone Village. To start, the main dig guy here will sell you Diamond Bangles and Rune Armlets. Diamond Bangles are the most powerful equipment you can get thus far in the game but Rune Armlets come with double Materia Growth. Your choice on which one you want to use - I went with Rune Armlets on two chars and Diamond on the character with Cover Materia (Cloud).
When you are ready to advance the story forward you'll want to tell the foreman to "Start diggin" and that you're searching for the Lunar Harp. This item has a set spawn location which is shown in my screen shot below - so technically you don't even have to search around for it.
You'll find the Lunar Harp in the upper portion of Bone Village, tell one of the staff to dig in the area just to the left of where the smoke is billowing out of the main building. If you're still confused as to where this is, click to enlarge my screen shot below.
In addition to the Lunar Harp there are three more treasures you can get from Bone Village at this time. They include...
Mop (Cid Weapon)
Buntline (Vincent Weapon)
In my screen shots below, each of the locations you see one of the staff members digging are the locations that you'll want to dig for one of the above mentioned items. You can only get a single item each time you dig so it'll take at least four digs minimum to get all of the items here.
Note: There are a lot more items you can find here but not right now.
Once you've obtained the Lunar Harp you're ready to exit Bone Village to the north and go into the Sleeping Forest. All that there is for you to do in this forest (aside from run through it) is collect the Kjata Materia that floats around the forest.
Basically this Materia appears and reappears in different places throughout the forest and you have a few seconds to grab it each time this happens. Grab it then exit the forest to the north to find yourself in a new area. In this area you'll want to grab the Water Ring inside of a chest. After that exit to the east to find yourself back on the World Map.
Fort Condor Battle #11: That's right, yet another battle. Fort Condor Battle #11 is available for a short time yet again. There will be one more battle in a little bit before the end of Disc 1.
Travel north on the World Map to find the Forgotten Capital, which is the next dungeon and also the last dungeon of Disc 1. Don't worry about getting lost, once on the World Map you can't go anywhere else but the Forgotten Capital - mountains block you in.