Lost in Narshe

Hello all. I have just purchased Final Fantasy VI Advance, and while I am enjoying the plot (reason I bought it essentially) and beating the bosses has been reasonably simple, I keep getting lost & messing up the little subplots.

I got up to the point where my team has returned to Narshe on the airship. After the long scenes, I went out and followed that Lone Wolf character. When I got to the top of the cliff, I saw him and the Moogle. But when I walk forward he says, "One step closer and the moogle gets it!"

So I've been wandering through the mines wondering if you are supposed to find another character or another way up top. It is very boring and tedious.
So the following questions are in my mind:
1. What did I do wrong?
2. Is there a way out of this situation?
3. Will I have to start a new game?

Please tell me the answer to the last one is no, because it would be very displeasing to learn that I have to start again after going through so much.

Stand there for about three seconds and then make the choice between getting the adorable little Moogle in your party now, or taking an accessory that halves MP usage which you'll just get more of later. If for some reason you take the Gold Hairpin, you can get Mog again later.

Thank You! It seems that my lack of patience has been my undoing once more.

So after this we get back to the main plot, right?

as i understand it, mog is an extra character and you don't have to do this part of the game at all. whatever plot line you're looking to pick up is somewhere else :o but i can't remember where... i'm playing myself, but much earlier on. i've finished the game before but it was many years ago...