In Arcatera there is no predefined way you have to go. You can move freely in the city, talk to people or attack them, get imprisoned in the dungeon for doing so, break out again and do countless other things as well. But no matter what you do, it influences the course of the story. If you insult an NPC, he might not be willing to help you later. If you leave your equipment on the street, someone will take it if they can use it. If you do absolutely nothing, the story goes on anyway and you might find yourself in the middle of fast-moving events that you'll have to deal with.