Make sure Zell is with you before entering Balamb City. Once inside, speak to the Galbadian sentry to get through. Visit Zell’s mother then head down to the Hotel. Talk to the guards stationed there to learn that you cannot enter until you find their Captain. Continue to the docks and speak with all the soldiers near the dog. You’ll find a Tabloid Guy hidden behind the vehicles who sells information. If you use his services, it’ll lower your SeeD rank.

After learning that the Captain was seen fishing, return to Zell’s house. It appears he just used the kitchen to cook his catch. Go upstairs to rest and save then head to the Train Station on the left. Talk to everyone there then return to the docks. The dog will lead Squall to the Train Station, where the group sees Raijin (the Captain) run away. Follow him back to the Hotel (you might want to save at Zell’s house first).

BOSS >> RAIJIN / G-SOLDIERS x 2
HP: 9,200 Weakness: Poison Strength: Thunder
AP: 10 Draw: Thunder, Thundara, Shell, Protect

Strategy: Get rid of the guards first then concentrate your attacks on Raijin. He absorbs Thunder magic so don’t use Quezacotl on him. Counter his heavy hits by casting Protect on your party or using a Blind spell on him. Try to mug a Str Up potion from him, too.

Once Raijin has sustained enough damage, he’ll flee. The group follows him into the Hotel.

BOSS x 2 >> RAIJIN & FUJIN
HP: 10,800 / 8,100 Weakness: Poison Strength: Thunder / Wind
AP: 12 / 10 Draw: Thunder, Thundara, Shell, Protect / Aero, Cura, Life, GF Pandemona

Strategy: Start off by drawing GF Pandemona from Fujin and casting Blind on Raijin. Fujin uses a deadly attack called Sai, which reduces your HPs to 1, so be prepared to heal often. Casting Shell & Protect on your party members helps reduce most all other damage. Junctioning Bio to Elemental Attack is also helpful as both are weak against Poison. Try to steal a Str Up from Raijin and Megalixir from Fujin.

After the fight, you’ll receive Combat King 002 and automatically board Balamb Garden. If for some reason this doesn’t happen, here’s how you get out of town during the siege:

Talk to the girl in the house next to Zell’s then talk to Big Bad Rascal in Zell’s house twice. Return to the neighboring house, converse with all the people inside then leave. Talk to the guard near the Car Rental shop, but DON’T close the message screen. Let the people outside finish their motions and eventually the Big Bad Rascal will teach you a way to get out when you return to the previous screen. Afterwards, try winning Zell’s Card from Ma Dincht (Zell’s mother), but note she’ll only play it if Zell is in your party. The Hotel Owner holds Pandemona’s Card.

Either way, talk to Selphie when you’re back on the ship. She suggests going to Trabia Garden, which is north of your current location. You may want to visit a couple of places along the way.