Returned to Motavia but instead of the familiar Paseo I had to park right next to a small village called Uzo. There's a Light Saber for sale here which is a good upgrade for Alis but turns out you can get a free one a little later so I would eventually be rewarded by not immediately splurging. Directly south and slight west I bumped into Casba town but seeing as it's completely surrounded by rocks and a small lake the only way to reach it is through Casba cave nearby. I was warned by the Uzo citizenry that the cave was full of dragons and sure enough, I found both a Red Dragon (that drops the aforementioned Light Saber freebie) and a tougher Black Dragon that drops the Amber Eye key item. I forget what exactly this does but apparently it'll come into use eventually.
In Casba the only item of worth is the Land Rover for sale at a reasonable 5400 meseta. Since I found the hidden 5k meseta chest in the cave this a no-brainer purchase. With the Land Rover my team can steamroll over the Antlion dens that blockade certain portions of Motavia. I now have free reign to go just about anywhere on the planet but it's also easy to lose my way since landmarks are sparse. The map is actually rather small and you'll eventually wrap around to the other end quickly by only going one direction. The townspeople mention a poisonous marsh nearby and a hidden flute somewhere back in Gothic. Before that however, I stumbled onto a new cave tucked away in the mountains south of a big lake and decided to investigate. It's a pretty fair size dungeon and contained a lot of chests w/ misc. items and some old equipment for my mage. At the end of it I bumped into 'Noah's' mentor who decides to challenge him to a one-on-one duel, unfortunately his magic was mostly depleted so I had a hard time of it. Winning gets you the Frade Mantle, the strongest armor that Noah can equip.
With a bunch of meseta in my pockets from all the fighting I decided to look up Paseo and see if I can purchase those expensive Diamond Armors I was teased about earlier, but I was still short a couple thousand. Also I tried to access the spaceport and the guards confiscated my passport. :(
EDIT:
I had to consult a faq for this next part since I couldn't remember how to find the Hovercraft on Motavia. Turns out you don't, but the clue you need to get it requires you to talk to a specific person in Uzo. When he asks if you know what a Hovercraft is, you're supposed to say YES to trigger the flag. He'll then detail where to find it. I don't remember talking to the guy before so no wonder I was lost. With that I went back to Palma and got the flute in Gothic's little dead-end alley and walked to Bortevo to scan some garbage and get the Hovercraft. With it you can access two new areas on Palma: Drasgow in the south east of the map where I will be able to buy the Gas Shield, and a lone tower on an island west of Bortevo. I ignored the tower for now and left for Motavia with my prize. I could now journey into the poison marsh and enter the town of Sopia. For a modest donation the elder will point out the location of the Mirror Shield. And that basically wraps up Motavia.
With the Mirror Shield on 'Odin' we can finally challenge Medusa's Tower back on Palma. It would take several trips between the tower and Gothic to heal before I managed to explore most of the dungeon due to the toughness of the enemies there, especially the Marauder/Reaper enemies who can use THUN to damage my whole party. Not only that, but there were quite a number of trapped chests that sapped my strength and terrible rewards besides a few 'Burgers'. Eventually I'd reach the top and fight Medusa at the top of my game, and without her ability to petrify my party we made short work of her and claimed the Laconian Axe for 'Odin'.
After buying some Diamond Armors for Alis and 'Odin', I was finally ready to check out that island tower.