I recommend you take a look at the map in the ocean! This will help you deduce where to go next ^^
If you want, you can also find a walkthrough here
Ah, fair enough!
Your characters will be revived once you save. There is also an item called a Heartchain link which can be used to revive a character anywhere, but you might not have access to it yet, I'm not sure.
Likewise there is also an item that instantly removes any fight on use, the Heart dummy, bought at the same shop as the Heartchain link. Or you can use Sneak mode (The button with Vuu's face, next to the map) to lower the encounter rate. Finally when walking into a room with an enemy encounter, you can always walk back the way you came from. In some cases this can allow you to walk around the encounter ^^