Upon first entering from the west the first building to the north is the inn, which is run by a common innkeeper.
Make your way to the southeast corner, keeping an eye out for a man wearing Priest's robes. If you see him stop and talk to him. This is Kirchner, who wanders around Midori Province providing healing services.
Once you reach the southeast corner enter the barracks here. In the office is Daltrey, who will give you a quest to kill some Giants who have been lurking nearby. Once you've completed his quest he'll teach you some Anatomy as a reward.
Now make your way up to the northeast corner of town, where you'll find two shops. The eastern shop is Merry, and the western one is a common provisioner.
You should now see a section that runs between the outer wall and the walls of Merry's shop. You have to go outside the walls and enter this secret passage in the northwest corner of the passage. There are a few Foul Rats waiting for you, and around the corner are a few Giants. These are the Giants that Daltrey wanted you to kill, so don't forget to go back and talk to him once they're dead. Check the ground behind the Giants for a suit of Iron Chain Mail+. This is a regular suit of Iron Chain Mail that has been augmented to give +20% Resistance to Magic Damage.