So, I think I figured out what your problem is...did you get TWO berries (gems) to give to the nurse, to heal the girl? Basically, you have to climb the rope in the forest at least twice, otherwise the nurse sends you back for more.
After giving the nurse at least two berries, leave town then come right back. Talk to the nurse, then talk to the old guy in the room to the left. This will trigger the next event, etc.