Lunar Threads

ok i did that now but i can't get to the forest it won't let me enter it for some reason.

Having trouble progressing here have no idea what to do. I've talked to everybody and nothing has happend. I found the tournament thing in whats his names house but i have no idea how to get signed up if thats what i'm supposed to do. Can someone help me? I'm trying to progress through the storyline.