Head south across the bridge to find 2 people arguing, one of them has a ! above their head (2). Sell anything else you might have and buy a bow if he has one and you can afford it. Afterward backtrack to Tiresias and choose option 1, and then choose 1 again. Once you reach the waterfall you'll get an scene (2). Remember this guy and head south, you'll find an 8th rabbit on the way. Once the conversation ends and you've slaughtered all the rabbits (I counted 7 or so), enter the village and head west over the bridge, and then north to find a guy in purple robes behind a table named Tiresias (1). Remember to keep track of how many you've killed so you can stop at 29 and be prepared for the boss fight the 30th spawns. If you get too close a conversation will start, if this happens just finish it and then track down the 2 rabbits. There's 5 rabbits on this hill, and 2 that are typically by the guy at the gate. The game will explain the controls while you go up the hill. Walk up to it and mercilessly punch it with.
You'll find yourself in a conversation next, and after it you'll see your first rabbit hopping along, innocently.
