Item description:

Run to the right (LS and R2)
Go up the stars/steps
Run straight on

** !! There Will Be A Cutscene, 2 Children Playing About With Oscar !! **

Press O (Let's Go)

Press O (back)

Make your way back to the main street, but.. before you do,
you'll notice the bit of cement close to a postcard stand
(just below a greenish neon light sign)

Press /\ (Look)