Escape the Reactor!
You should escape from the fiey reactor with no problems. You'll want to follow Barret to the main streets of the city where you will bump into the girl you saw in the opening sequence. This flower girl will ask Cloud about the explosion and if done correctly, she'll want to ask Cloud to buy a flower. Since it is only 1 gil, buy the flower. After doing so, walk straight, offscreen. Note: There will be a potion lying on the ground. Make sure to grab it!
Keep heading straight on the screen until you get to a small road with many houses. You'll encounter soldiers and you'll have to choose fight or run. It is recommended that you fight these enemies, at it will be extra expirence gained for you. After a while, Cloud will jump off the bridge and onto the train below.
Sector 7 Slums
The sector7 slums! Before you make your way to it, you should see a save point. Make sure to save your game! Afterwards, you'll find Barret standing infront of a bar - the 7th Heaven. Go inside the bar and Tifa will greet you as well as Marlene. If you bought the flower earlier, you can decide to give it to either one of them.
After some plot progression, and the gang deciding what to do next Barret will give Cloud 1500 gil.
Once Tifa and Barret are in the party, explre the slums! You'll want to do several things, such as go to the weapon spot where you can get some brand, spankin' new Iron Bangles! Yay!!! Also, if you go to the Beginnger's Hall, you'll get an All Materia. At the item shop, you can stock up on potions, as well as grab yourself some materias, such as the fire materia.
It is recommended that you place the "All" materia with a "Lightning" materia, since the enemies in the next area are weak to lightning.
After exploring, go to the train which you came out of when you came to the slums in the first place.
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