We get pulled into a rather arbitrary side-story (but we get a Serpent Item out of it so whatever) and then we get to bop around in the woods for a while to find the Hound of Doskar and track Cantra. Remember that subplot? I don't blame you if you don't.
Before you move on from this point, make sure you have a set of "warm" gear (boots, cloak, helmet) for each member of your party. If you're short, you can buy some more from Cellia in Monitor.
(The Helmet of Light also counts as warm headgear.)
You should also spend any training points you have now, as we're coming up on a point of no return.
No reclaimed items or teeth this time.