UPDATE - I've got to go to the Black Mage Village, again, and I've just commandeered the boat, Narcissa; on disc three, and I'm planning to do some level grinding and item finding fun before I resume the story.

Character level - 35-40 (I have returned with the original party: Dagger, Zidane, Vivi and Steiner) - I've noticed that Dagger randomly will be inactive to input commands on unfortunate occasions, but I don't really care.

The usual question and a bit more: Are my levels good enough for the next boss, and where can I get a better weapon than the Coral Sword, for Steiner and a weapon for Zidane which is higher than 44 in attack?

Also, would it be possible to take on Grand Dragons at this stage, what tactics should I use, and what amount of EXP are we looking at, also care to give a rough estimate on how much HP it has?