Gold Saucer

At the entrance, you'll have to buy a pass: 3000 gil for a one-day pass or 30000 gil for a lifetime pass. Buy whichever you can afford and go in. Choose one of your companions to explore with then head to the Speed Square. Talk to Dio, the owner to find out that someone matching Sephiroth's description was here.

Head to the Wonder Square and talk to Cait Sith until he joins your party. Head to the Battle Square where you'll find dead people all over. The evidence seems to point to Barret, so Dio captures you and throws you down to the Corel Prison.

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Notes: Don't bother trying to win all the games here at this time, you'll have plenty of time later on.