Old Miltia

After the opening cut-scene, you'll be controlling the E.S. Asher. Continue forward a bit and you'll encounter a save point, access it and save your game. Follow the path until you get to an intersection, then head left. Destroy the wreckage here for a treasure chest with a Power Shield. Proceed southeast to the next area, for another cut-scene.

Approach the A.M.W.S. once you regain control, to initiate a battle tutorial. Just follow whatever instructions you're given. Also just some notes about the traps -- Destroying these things will freeze enemies in place, should they come in contact with the purple wave. In addition, it will also have various effects during battle. The YELLOW trap gives you STOCK BONUS while the RED one gives you BOOST BONUS. (These effects apply to character battles as well.) So be sure to use them to your advantage.

You'll have to continue your journey on foot, with Jin in your party. This is a good time to start learning abilities for your characters. (If you loaded your XS Episode I clear data.) Otherwise this would have to wait till later. Save your game and move on east. You'll come across a large pile of rubble to your right, blow them up -- one of the large tanker at the backwill reveal another treasure chest containing a Revive S. Head back to the main path and continue to the next area.

Here, approach the UTIC Soldier to initiate your first of 2 tutorials regarding character battles. Further down, there will be a destructible part on the left wall, blow it up to reveal Segment Address #14. Then approach another UTIC Soldier for your final tutorial. After that continue onward a bit and climb the ladder to your left. At the end of the path, destroy the crate for Skill Upgrade D (x3). Go back down and proceed to the next area.

Just follow the road east, blowing up the green rings on the pillars along the way. One of them contains a Bio Sphere. Go on to the next area, to trigger yet another cut-scene. Once you regain control, save your game and continue forward, blowing up obstructions as you go. At the next area, watch some more cut-scenes, followed by a boss fight.

Boss Battle - Margulis

One way to make quick work out of this battle is to have both Jin and chaos use their Double Attack: Ice Brand. So first, attack with your characters until you get your boost gauge up to 1. Then Stock both of them up to 2, and use Ice Brand. This should deal about 700+ damage on Margulis. After that, just attack him a few more times; and that's it. You might want to finish him off when the "BST" icon appears on the Event Slot, for some extra Skill Points. Since he automatically counters with a final attack that moves the slots ahead by 1.