When you arrive at Habara, go to the east side of the beach to find a vending machine.
Inside, people are talking about a pop singer called Mute, and some exclusive concert by an underground band. Sounds suspicious.
Go Up
On the first floor, you find Ayaka, who likes "bad" boys and old video games. If you have -30 karma and give her a bunch of old video games, she will join you on the ship.
Also on the first floor, there are a couple of vendors selling expensive weapons.
Once you get to the third floor, the music stops. There is a shelf with part 4 of the CosmoNOTs special. It asks why Mint became the leader of the CosmoNOTs, and says that it's because she's part of the Cloudy Crime Syndicate. It is unknown if she is the heir to the Cloudy fortune.
Also on the third floor, there are two chests that you can only open by lockpicking. There is also a chest that you can only open with a key. It contains a Bokuto. You will lose karma for opening it.
On the fourth floor, some different music starts up. In the top right corner, you will find another chest that can only be opened with lockpicking. When you go farther into this floor, you encounter a guy who has an electromagnetic shield apron, and there's an electromagnetic anomaly, but the guy is fine. He taunts you and disappears.
Go south from the arrow on the floor that points to the right. You should be able to walk between a couple of shelves and then through the wall and to the left to find a chest that you can open to get Jumping Man. You will lose karma for opening it.
Continuing through the room, you will fight a couple of monster refrigerators.
On the next floor, you will fight more refrigerators. There is a small corridor with a couple of normal refrigerators that goes toward the escalator. Go down from that corridor to get into a hidden area with a chest that you can open to get juice (but you lose karma.)
You'll encounter a monster guy a little bit ahead. He can generate a random number and inflict that much damage on you.
A little farther ahead, there is a recessed area of the wall above you. Walk into it and go to the left, then up, to get to a chest that you can open with lockpicking.
There is another enemy refrigerator before the escalator to the next floor.
This floor has some monster vacuums and another of those monster guys. You will need to go into a small door near the bottom of the room, then head east behind the refrigerator and out another small door.
On the next floor, there is a bath for healing up, and a bed where you can save.
The next floor is straightforward and has some cell phones that will attack you near an escalator. Just keep going until you get to the escalator to the next floor.
You will encounter a guy standing in front of an arcade machine. He'll ask if you have any Mu Crystals, saying that Mute will only let people into the band's show if you have some. The guy steps aside and lets you try the game for free.
Get Into the Game
When you check on the machine, you end up going into the actual game. Go to the right from the title screen, and continue along the track. You can fight the cars if you want, but they will just keep reappearing forever, so you might as well just keep going along the track.
Eventually there is a fork in the path. Take the southern path. Keep going south until you reach a dead end. You can walk between the cones and into the forest. There is a chest in this area with a cheeseburger inside.
Go back to the main path, and take the western path when it splits. Keep going and eventually you reach a cluster of racecars. You need to kill them all. Try separating them so you can fight them one by one. Keep your HP high because they explode when they reach low HP.
When they're all gone, the announcer will say some stuff. Step down from the pedestal and exit to the left. Then exit the game through the door on the left. You'll be back in Habara. There will be a bath and bed where you can heal and save. Then go up the escalator.
On the next floor, the path splits. Go to the left. When you get past the phones, go to the area to the right with the real refrigerator, and go east through the wall past it. When you can't go east anymore, start going south. Go past the escalator, and follow the path to a chest containing a Ginsu. Then go back to the escalator and go up it.
Another store guy will talk to you. Check on the game to get into Dragon & Dragon. Go east, then go into the house. Kill the ghosts and open the chest for a Short Sword. Then exit the house and keep going east.
Eventually after fighting your way east, you discover a skeleton knight. It has a lot of HP and is the closest thing to a boss that Habara has. Use the Mochi decal if you think it will help, and your other decals as well. Use potions as necesary.
When it's gone, head east into the castle. Keep going until you reach an area shaped like an NES with controllers. After coming down the straight path, go to the left. You will find a chest with an Evil Staff in it.
Go back the way that you came and go to the east. Step on the grate in this second controller to escape from the game. Use the bath and bed to heal and save. Go up to the next floor.
There is a really long escalator. Once you get to the top of it, you can go through the south wall on either side. It will take you down to a chest that contains the Masamune. Now go back up and exit to the north.
Watch the Concert
You'll reach the entrance to the concert venue. A guy tells Terry that Mute talks about Mu Crystals all the time in her blog, and anyone who brings one gets to go backstage and shake her hand.
Terry gets into a fight in the front row and Mute stops the show. Terry jumps on stage. Mute and Lester get angry with him, and Lester keeps Terry back while Mute asks the crowd for their Mu Crystals. The crystals fly over to her, then she and the rest of the band run away. The crowd gets confused, thinking the band abducted Mute.
Then you see the professor in his lab. Terry is back on the ship. Apparently you, the player, lost contact with him.
The next day, Terry goes to the professor. The professor apologizes for what Terry's been through and says he'll use the ship to get Terry back home. However, Terry runs away to his room without letting the professor finish.
The professor decides that it's Terry's decision whether or not to keep helping the professor, but he admits that if Terry decides to go back home, the professor will just have to give up. But suddenly Terry comes back, ready to help the professor more.
This will be Terry's final mission, to get the final elemental cell from the CosmoNOTs. They have gone to Akumojo Castle, and they are plotting a Mu Control System.
The professor gives you the Sun and Moon sticker. If it gives you the sun, it deals great damage to the enemies. If you get the moon, the enemies fall asleep.
Before you can get to Akumojo Castle, you will need to get Blue Sky March from the sales guy on the second floor of Habara. It costs 10,000, so there are various ways to get it. My preferred method is to buy a Carp Sushi from one of the sales guys on the first floor of Habara, then give the Carp Sushi to Copper, the mayor of Caldoaxa, in return for 10,000 G.
Once you have Blue Sky March, set SeaNavi to Akumojo Castle.