Olson lets Lloyd visit Menasa for a while before your next mission and Natalie tags along to show Lloyd around.(And Keith dislikes this :P) Upgrade all your wanzers, talk to Alder in the bar, then go to the Colloseum. A woman named Yang recognizes Lloyd from a picture Karen showed her. Yang explains she was in same hospital as Karen until 2 months ago and promises to tell you the hospital's location if Lloyd wins a colloseum fight against her. Accept the challenge and don't forget to upgrade at least Lloyd's wanzer. It should be an easy win, and Yang also joins the team after the fight.

The hospital is to the north of Menasa, in the city of Grey Rock. Try to leave town and Natalie tells Lloyd he'd be violating orders if he did that. That obviously doesn't stop him and the rest of the team also joins in to find Karen.

When you reach Grey Rock, it's under USN attack (Paul asks for your backup) and guess WHO is just in front of the hospital waiting for you.

6 Attackers in GALVO Lv 4 HP 124 (Body 42 Arms 50 Legs 32) FI 11 ST 12 LG 0 AG 49

3 Missilers in HUSKY Mk.III Lv 4 HP 117 (Body 39 Arms 48 Legs 30) FI 17 ST 0 LG 14 AG 47

3 Commanders in GIZEH Lv 5 HP 131 (Body 45 Arms 52 Legs 34) FI 12 ST 13 LG 14 AG 52

Driscoll in TYPE11DS Lv 40 HP 740 (Body 250 Arms 240* Legs 250) FI 15 ST 125 LG 0 AG 265

USN Soldier Supply Car Lv 1 HP 200 (Body 200) FI 0 ST 0 LG 0 AG 205

Military Commission None. You violated orders, remember?

Destroyed Enemy Bonus 3240(There's an extra 7882 for Driscoll only, but you must leave at least one enemy unit alive, being 10852 the best you can get by defeating Driscoll and all units except one.)

The secret of this battle is not wasting too much time. Paul is a decent missiler, but he tends to go fight those 4 wanzers in front of him alone, which isn't good. Just try to destroy all units before Driscoll reaches you. Beating Driscoll IS possible and gives lots of exp(1007 exp) plus 7882 in cash, but isn't worth the time you'll waste and won't change anything in the story at all. To destroy Driscoll you have to leave at least one enemy wanzer alive because he'll escape if you destroy all enemy wanzers. You can't reach the stupid supply car before it escapes, so just ignore it.

The hospital is blown up, and you have a flashback about Karen. When entering Grey Rock, Yang leaves to see an informant called Hans and Olson warns that you should be facing martial-law, but thanks to General Blakewood's orders you will be forgiven this time. Go to the bar and talk to Paul. He will ask to join the unit to avenge his comrades. Accept him and go to your next mission

* For some reason beyond me, Driscoll's arms have less HP than when you met him in your first mission. Don't ask me why. :P