Continue walking forward until you see a pavement road. Finally out of the dirt paths and into Silent Hill's town proper. Turn left on Sanders St. for now
Keep walking left until you see a small table with gardening supplies and grab the first-aid kit on top of it. Try to find supplies as much as possible, they're a big help during the start of the game.
Now head back and walk towards the right side of the street (the one you didn't take yet). Keep walking until you find blood marks on the ground. James will comment on it and you'll be given a first look at the monsters called Lying figures.
Follow the path where the Lying figure went. You'll find more blood marks, this means that you're on the right track. Keep following them until you see some blood marks that leads towards an alleyway.
Turn right and follow the blood trail into Vachss St.
Within Vachss St. You'll see a low metal mesh gate. You can enter through here. Grab the Health drink on the floor at the left side of the area. Then grab another health drink near the table with a save point. Save your game if you want to. After that head back out into Vachss St.
Continue walking down Vachss St. and you'll see another half open mesh gate. Pass by it and walk along the dirt roads until you see a small barricade made out of wood. Stand close to the small opening and examine it. James would automatically enter the space and a cutscene will play.
Once the cutscene ends you'll have to kill the Lying figure. Don't worry too much since it won't attack you at this point. get a feel for your new weapon and hit it until it dies. Once it's dead head back out through the opening of the barricade and another mini cutscene will play.
Head back out the dirt road, through Vachss St. and into Lindsey St. Once there head down and take a right turn to Katz St. down Neely's St. and towards Saul St. Avoid any enemies you may encounter. Silent Hill doesn't reward you for killing anything. So I would suggest you avoid any enemy that may be lurking in the streets.
Once you're at Saul St. keep going until you see a trailer home, enter it when you see it.
Inside the trailer there's a piece of paper on top of the couch. Examine it and it will mark Neely's bar in your map. There's also a save point so save your game if you want to. Once you're done here head back out into Saul St. through the trailer door at the left side.
Head back towards Neely's st. and look for Neely's bar. It isn't too far away from Saul st. and is located near the intersection of Sanders and Neely's st.
Examine the door near a payphone and two windows covered with newspapers. This is the entrace to Neely's bar.
Once inside examine the map that's left on the bar table and you'll be given more map marks. One is the apartment building and another unknown mark at Martin St.
First we'll head for Martin St. So head out Neely's bar and backtrack through Katz St. then take a left turn at Martin St. Like Vachss it's also an alleyway. Once there head towards the back and don't forget to grab the health drink near the entrance.
At the end of Martin St. there's a dead body. Get near it and examine it to find a key for Wood Side Apartment. There's also a Lying figure in this area. It's best to just avoid it but if it gets too close while you're trying to get the key, then just kill it. It's easier to kill them by pressing the action button while they're on the floor. James will stomp at them and kill them.
Now head back out into Katz St. and turn right until you get to Wood Side Apartment. There are a few Lying figures in the area but they're easy to avoid.
You should be able to find the apartment gate with ease. It's in front of the sign.
Examine the gate and James will automatically use the apartment gate key that you found on the corpse at Martin St.
Enter through the gate then turn right and enter the first door. Now we're inside Wood Creek.