Important Note: If you follow these next few steps too far you'll be locked out of using McNeil village for a while, as you'll be stuck in a specific dungeon. Don't proceed unless you're done exploring the Yraall Region, and make sure that your party is outfitted with the best weapons and armor McNeil has on offer.
Ryu, Rei, and Teepo are officially heroes, and with their newfound status they've earned some attention from... a shady fellow. Shortly after you speak to the people of McNeil village the boys will be approached by a cloaked guy named Loki, and if you agree to listen to his request he'll ask you to meet him in a hut down south.
Follow the road southeast through the Farm and you'll find the hut Loki mentioned. Head inside and Loki will reveal his plan: He wants Ryu, Rei, and Teepo to steal tax money from McNeil, the greedy head of the village. Despite some slight misgivings the group agrees, and when you regain control you'll be exploring the grounds of McNeil Manor by nightfall.
Ryu, Rei, and Teepo will split up to look for a way into the manor. Check out the west side of the walls surrounding the manor, in the northwest of the map, and you'll find a chunk of wall that looks... different. Inspect it and Rei will discover that it isn't as repaired as it may have looked. This will grant you access to the manor's courtyard.
The courtyard is filled with hedges, and a wall of them tries to guide you northwest from the entrance. If you twist the camera before you leave the entrance, however, you'll see that there's a path to the southwest. Follow it and you'll find a hidden guy at the end of the path. He will give you 50 zenny for pretending you never saw him.
This is good timing, as once you follow the main path to the northwest you'll run into a guard. He's the first of many guards on the grounds who does not take his job seriously - though he still wants 50 zenny to ignore your presence. If you get caught during your trip through the estate you'll get shot back to the entrance and will have to pay this man 50 zenny again, so... don't get caught. (If you run out of money you can fight monsters back on the other side of the manor walls. You can also head to the hut in the south and speak to Loki to rest if you're running low on health.)
Defeating Pooch will let you slip past the guard and carry on northeast. Check to the north to find stairs leading onto the path adjoining the manor's facade, then follow the path east to find a chest containing a Firecracker. Return to the grass.
If you check the middle of the hedges in this area of the courtyard you'll see several men, as well as a woman who looks indecisive. Speak to the men and the woman to learn that she apparently has a large number of suitors. Next, speak to the guard who is standing in front of the chicken coop in the northeast. Scandalized, he'll run off to join the throng of lovesick dudes.
Heal your party up in case Pooch did a number on your party, then enter the chicken coop. A battle awaits.
Steal: Life Shard
Drop: Nothing
Skill: Jump