I morphed into Wooly and visted the Monster Village in Sol Terrano Desert and talked to everyone there while being a Wooly. I'm stuck because the FAQ says to go to Dragon Graveyard but everything is blocked off by walls and I can't get to Dragon Graveyard map.
i actually just did this, if this was the first time u found the monster village that is. all u do is go back home, the old guy talks to u in a dialog scene. then u go back to the monster village and talk to the leader person and she gives u the quest for the dragon bones and it clears the blockage --- proud ff7 fanboy