As you most likely can tell I am a complete n00b at this game. So, I was playing and blah blah blah.... following the story I got to the Friendly Arm Inn and outside there is a guy who attacks me and every single time (about 23 times) I have tried beating him he just shoot magic ball at me that makes me 'Panic' I lose control of my party and he just destroys them. Am I missing something? Is there something I must do before this? This is my first combat encounter in the game, is that right? Please help.