Icicle Inn - FF7 Walkthrough
The Icicle Inn is the first town you will come to on Disc 2 and it's found almost directly west from the cave that we came out of. This town is the home of the Snowboarding mini game, a game you'll be able to find in the Gold Saucer if you ever wish to repeat it.
Before we get to any of that though, you'll want to explore the town and collect all of the goodies here - especially the Great Glacier Map which we'll need for the next part of the game. In the Inn you'll find the X-Potion on the 2F, you can just barely see it through the window on the left side of the screen.
When you're ready to progress the story forward you'll want to try and exit out of the northern portion of the Icicle Inn town. An NPC will stop you, say to him "I'm still going" and you'll trigger a scene where Elena from the Turks walk into town and come up to speak with you.
A brief mini game will commence where you'll have to dodge Elena's punch, failure to do so will have you wake up in the Inn. Successfully dodging her punch nets you no reward - only different dialogue. Before continuing out of the northern exit of town you'll want to stop by the building in the center part of town and grab the Snowboard Key Item which is on the bed (pictured below).
With the Snowboard in hand head out the northern exit and participate in the Snowboarding mini game. Your performance during this mini game doesn't net you any rewards - so do whatever you please. When it's over you'll find yourself in one of four different places in the Great Glacier depending on which route you took during the mini game.