What a difference a day makes.
There isn't much you can do for the moment, as Ignis will be driving and you can't do anything in the car, including control the radio. What savages! Eventually, as you reach the border to Insomnia, you'll run into an inspection point (good thing you looted this area earlier, right?), prompting Ignis to take the car down a side road. Once you get out of the car, head south-east up some stairs into the ruins overlooking Insomnia, inside of which you'll quickly run afoul of some Imperial Riflemen .
They're trained soldiers with guns and you're a bunch of kids in chic clothing with fabulous hair and magical, vanishing weapons, so naturally they don't stand a chance. Their bullets amount to pin-pricks, and although they'll hit you often, their guns apparently fire cotton balls. Cut your way through them and go up some stairs to encounter another, larger group, this one including an Imperial Sniper . Fight through this second set-piece battle and continue through the ruins into the gorge beyond.
When you reach the gorge, note the Imperial Sniper on high ground above you. Spoil his attempt at an ambush by Warp Striking him, then continue into the gorge to find a third detachment of imperials, including some Magitek Axemen . These foes hit a bit harder than their more fleshy companions, but they're still not too much trouble, Scrap them and you'll obtain a Drain Lance pole-arm. After finishing all of the enemies, make your way to the top of the hill for some more cutscenes, bringing an end to this chapter.
Funny, the view isn't so grand this time around.
Note: Weapons whose icons bear a "+" symbol can be upgraded at Cid's garage. If you've been following this guide, the only applicable weapons you currently possess include the Drain Lance and the Engine Blade.
Completed Chapter 1.