Ride your Chocobo east and enter the meteorite.
Follow the linear path, watch a scene, then pick up a chest in the bottom-right corner.
Head back to the giant tree and talk to the old man on the right side.
Leave the area after the dialogue.

Item Checklist:

• C-001: Phoenix Down

Overworld

Head west until you see a path north.
Enter the path to trigger a scene, then keep heading north.
Along the way, you'll have to fight 2 battles with 2 Goblins and save Lenna and Galuf.