OK, when you wake up you get the April Weapon's Monthly. You go on a train to Timber now. There's a Pet Pals Vol 1 in the SeeD private cabin.

Laguna & Friends: When you get to the Galbadia Hotel, listen to the piano player.

Back to Timber. You meet Rinoa. Read the wall items and grab PP Vol 2 from Rinoa's bed. Now on to the codes. It's just circle=1, x=2, square=3, triangle=4. The first set is pretty easy. The second is really timing. You can only do 2 or 3 at a time. Now you fight the various enemies.

At the Timber train station, be sure to buy PP3 and PP4. There are two things to read in the Timber Maniacs building. Explore everywhere.

Final Fantasy VIII Walkthrough