Find: Contain Materia, Curse Ring, & 1 Elixir.

Take the Highwind to the Southern Continent (the little skinny one) and land at the town here. Visit all of the shops and talk to the lady who's running around like a mad woman. Make sure you talk to her in each of the shops, later on you will thank me. Also, make sure you have at least 1 Mimett Green on you, and feed it to the white Chocobo that is following her around. He likes it. Scratch him behind the ears, and he gives you a Contain Materia!

Buy some weapons and stuff. Also, knock on the back door inside the weapon shop. Then go out and to the house on the left. Run around behind it. When you hear the metallic noise, search to find a Beat-up Useless Old Key. Go back to the door you knocked on and tell the weapon shop owner the truth. You get the Curse Ring.

Talk to the dog in the back of town. You overhear a conversation about Cloud. You run to the hospital, where Cloud is nothing more than a paperweight. Tifa decides to stay behind. Watch more plot on the Highwind, then Cait sith allows you to listen into the Shinra HQ conversation. Cid is made the leader of the party. Head to Operation Room and pick your party. Now return to the cockpit and land the ship. Enter Mideel again, and go into the house south of the hospital. Grab the Elixir from the bed, and leave. Say what you like to the old man.