After arriving at the southern tip of the Westernmost Continent, head north. There is a curving path that leads up to a high plateau. As you go along the curve (even if you are riding a Chocobo) you will be interrupted by Yuffie. The screen switches to that of a plain, and Yuffie runs up, steals your Materia, and escapes, but not before leaving you with two Shinra guards to contend with!
The guards are easily beaten, though. If Yuffie was in your party when she tricked you, you'll have to fight the guards only using two
people (in which case Barret will join the party afterwards, and if he's
already in your party, then whoever isn't being used will join.
Keep in mind that you can rearrange the party in whatever way you'd like
afterwards).
At this point, your characters will refuse to board the vehicle you used to get here (Highwind, Tiny Bronco, or Chocobo), insisting that they find Yuffie instead. If you were on a Chocobo when Yuffie stole your Materia, then you'll still be on it when the sequence ends, but you won't be able to board the Highwind, and if you get off the Chocobo, you can't get back on.
From the curving path, head north until you cross a bridge, then go west across a second bridge. Head southeast once you reach the other side; this leads to a north-bound path that runs under the bridge. Follow it and it will lead up to another bridge. Past the bridge, the land becomes flat and grassy. Keep heading north and you'll arrive at Wutai.
When you enter the town, Yuffie will see you and run away. Head to the upper-left corner of town. There's a path here that leads to a large courtyard and a pagoda. Enter the building to your right and walk along the hall until you arrive at a room with a man sleeping inside. Enter it and talk to the man. He is Godoo, Yuffie's father. Keep talking to him until he stands up, at which point Yuffie will appear and then be chased away by her father.
NOTE:This never happened to me.
If you follow Yuffie, you'll find that she has disappeared. Before leaving this area, enter the room next to Godoo's and examine the right wall. There is a hidden panel here that will open, revealing a passage. At the end of the
passage is a chest containing the Hairpin (a weapon for Red XIII).
On your way out, go into the room to the left of the entrance. You can come here and spend the night for free, but if you examine the scroll on the left wall, it will lift up, revealing another passage. The chest at the end of this passage has a Shuriken inside it.
Return to town and go into the Turtle's Paradise Pub in the southwest
corner of town.
The Turks are her! Talk to them all (Elena, Rude, and Reno). When you are finished, go to the Item Shop. Normally, there is a woman standing in front of a treasure chest (preventing you from getting at it) but now she will have moved away. Open the chest and you'll get a MP Absorb materia, but Yuffie will drop down from the ceiling and swipe it from your hands!
Leave the shop and go to the southeast edge of town. There's a building here near the entrace. Go inside and examine the folding panel to the left. Hiding behind it is Yuffie, who dashes away as soon as she is discovered. Chase her outside and go to the eatery. If you look at the jar standing outside the Pub, you'll see that it is moving. Approach it and press O to make your friends block all the exits. Then press O three times to make your main character hit the jar until Yuffie jumps out.
Seeing that she can't escape, she'll lead your characters to her house.
Meanwhile, two Shinra soldiers run into the Pub to meet with the Turks. After Elena leaves, you'll find your characters in Yuffie's house. When she goes downstairs, follow her.
Don't miss the Turtle's Paradise Flyer that's on the far wall
when you go downstairs.
Talk to Yuffie. When you can move again, examine the levers in the back room; you can pull the right lever or the left one. It doesn't matter which one you choose, since either one will make a cage drop on top of your allies! Yes, Yuffie has tricked you again. Examine either lever a second time to free your friends, then leave the house.
Return to the courtyard area where the pagoda is and you'll see that you can now enter the building to your left. Climb up the steps and examine the bell to ring it; this will reveal a hidden door.
Beyond the door, you'll find Yuffie, who has been taken hostage by none other than Don Corneo, the mohawked pervert that tricked you back in the Wall Market. He has captured Elena as well. Before chasing after him, open the chest to your right to find a Swift Bolt, and open the chest to your left to get an Elixir.
Go up the stairs and you'll find yourselves in the altar room back in Godoo's house. Three Shinra soldiers appear and attack you, allowing Corneo to escape. Kill the guards (they're the same as the ones that attacked you back on the curving path), then go outside.
Here, you'll run into Rude and Reno. Talk to them, then return to town and head to the northeastern corner of Wutai. There's a path here that leads up into the mountains, where huge Dachao statues have been carved into the rock. Talk to the Turks again as you follow the path, and keep going along the path until it splits. Take the path that goes north. It leads past a huge head to a crossroads. Rude is standing here, blocking the entrace to a cave. If you talk to him, he'll enter the cave. Go inside and open the chest in here to get a weapon for Cid.
You can't get across the fire-pits yet unless you've gotten the Leviathan Scales from the submarine docks. There's a chest here that has a weapon for Cid in it. Talk to Rude again and then exit the cave and head south to find Corneo, who's tied Elena and Yuffie to the face of a Dachao statue. When you confront him, he summons a boss to attack you.
Name = RAPS: LV: 39 HP: 6000 MP: 300
This winged beast isn't that tough, but unless you were able to hold onto some Materia, all you can do is attack. Use Phoenix Downs and Hi-Potions or other restorative items to heal your party, and you may want to use 'attack' items like the Deadly Waste or Swift Bolt in order to inflict damage along with your normal attacks. Because of their high attack power.
Red XIII and Vincent make the best allies to have in this fight. If you think you can make it without Vincent assisting you, then use his breaks to inflict lots of damage on the boss.
You'll recieve a Peace Ring when the battle is finished.
After the battle, Don Corneo will ask you a question and you have three answers to choose from. Pick any one you like. Corneo threatens to kill Yuffie and Elena, but then Reno and Rude show up and send Corneo to his well-deserved demise. Back at her house, Yuffie will give all the materia she stole back to your characters (including the MP Absorb materia).
You'll find yourself back in the World Map again, but I wouldn't leave just yet if I were you. Return to Wutai and enter the building near Yuffie's house. It's full of cats. Normally, there's nothing you can do here, but now you can climb up the steps in the back to find a secret passage. Walk north (towards the screen), to find a cat and a chest. Inside the chest is a HP Absorb materia. Take it and go back outside.
The next part is totally up to you. You might like to go and get Yuffie's Ultimate Weapon before do this.
Head back to the courtyard. Enter the pagoda and talk to the man there, Goorikii. He'll inform you that if she wishes, Yuffie can fight by herself against the five guardians of the Pagoda of Five Strong.
After each battle, go up the stairs and talk to the person there and fight them. You don't have to kill all the guardians in one go, and if
Yuffie is killed in battle, the game won't end, although she'll have
zero HP and will need to be revived before she can fight again.
After Yuffie defeats Godoo, he'll give you the Leviathan Summon and Yuffie's Level 4 Limit Break.