Follow this pattern to recruit Sarah the washing girl. Talk to the guy at the top right then the guy in the middle of town then the woman at the bottom right then the guy in the hotel. Next buy some sugar and retrace your steps.
After defeating the generals don't kill them. They make great allies.
Recruit Ricon and Clive
In the town of Ricon recruit Jabba with the h3less urn found in the forest right above Ricon. Clive is located in the Liquor store but he is random so keep coming back for him.
In Rockland talk to Marco and bet as much money as you can. When he stops switching the cups around look under the cup on the far right. Play again and this time look under the middle cup. Quit and come back again. Repeat this method to get a lot of money.
Gremio can be resurrected but you must defeat Teo with Pahn and recruit all 108 Stars of Destiny. Before the final battle Leknaat will resurrect your friend.