Enter the cave where you get the moon stone (the one where you get zylo) and check the walls you'll find the sugoi mizugi. Now give it to tao and go to headquarters. When you enter a battle Tao will wear a bikini
In order to get Gong before the first battle, you wave to "push" the guy who lost his wagon over to the gate so as to block the guards' movements'. Basically, this means you have to block his way away from the gate, and hope he will walk toward it. Eventually, will get three tiles away from the guards. If you walk forward more the guards will block you, so wait until he decides to get in their path before proceeding. Once outside, you can go to the little house near the site of battle #1 to get Gong. Also, if you try to fight battle #1, Tao and the others will speak but only You and Gong will be present! Try to win this one!
You'll see him in chapter 1 by where you get Gong. Talk to him. He won't join you right away. In chapter 4 in Pao town 1 (before the caravan moves), go to the priest's hut in the northwest area of town. Walk along the west wall INSIDE the hut. You should see Jogurt in the top left of the screen trying to flap his arms to fly. When he stops flapping, he'll be on your team.
First enter a battle as usual. Then proceed to fight the enemy, but DO NOT KILL ALL OF THE ENEMIES!!! Just kill some and leave the rest then cast Egress. You exit out of the battle and keep all of the experience that you earned. Repeat as neccsary.
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