Here's my notes on events in area two thus far (tiny for anyone that wants to avoid my meager spoilers):
1) After the standard 'talk to everyone and explore the map/towns', a guy comes into the sheep village; talk to him and he goes to bed after.
2) Back in the first village, there's a new guy hanging out behind the weapon/armor shop. Follow and keep talking to him and he'll eventually show his true colors and get tossed in jail.
3) Boat ride time!
4) Not really an event, but you can sleep in the destroyed temple in the ghost town.
5) Lonely tree in a field. It's an event location (you don't move when you press against it), but nothing happens yet.
6) Cave's are spooky!
- locked door w/ adjacent wall switch
- chasm w/ adjacent wall switch to activate Indy style invisible bridge
- hidden hallway (press against wall to enter) in upper right area
- pick up a 'shroom. It increases max hp, but is there a reason to hold onto it 'til later? I've no real need for more hp now, as everything dies in one hit and only one type of enemy can even do damage.
- pick up some hourglasses. They slow time, but I can't see any practical use for 'em right now; I thought maybe they'd work for springing green hair at night, but no dice.
7) After two laps of talking to everyone in both towns twice (night/day), visiting the ghost town, tromping to the solitary tree, and spelunking, I think I'm stuck. I gotta be missing something.