In this area, you can save your game. You must grab 4 'materia' from chests in this area to proceed the game later on. This area is the main area, and is called the Depths of Judgement. The first chest is easy to find and lies right on your path. The next chest is located at the end of the northern cliff. At the bottom of that cliff is a small caveway that leads to the third chest. The fourth chest is gotten by simply walking to the west at the main path. Also, read the prologue of loveless on the stone that's in the center of the area, near the save point. This is essential.
Now you have 3 options. The west path leads to the Portal of Severance, the South path leads to Oblivion Lake, and the east path leads to Howling Fang.
First off, head west to the Portal of Severance. The only thing you need to do here right now is read the 3rd chapter of Loveless on the stone. Head back to the Depths of Judgement, and head east to the Howling Fang now. Here, turn the valves to open up cells #33 and #34, and grab an [•X-POTION] from the chest. Open up cell #35 for the [•MUG (M)]. Read the Loveless chapter 2 on the stone, at the end of the hall, and ignore Behemoth King - for now. Head back to the Depths of Judgement.
Now, head south into Lake of Oblivion. Read chapter 1 of Loveless on the stone. There are 3 chests in this area, which contain the last 3 'materia' to proceed the game