Mario and Goombario at Goomba Village, the first town in the game.
Battles in this game are quite simple. Your two main attacks are "Jump" and "Hammer". Before each attack finishes the game tells you to do a command with your controller. If you do the command your damage is boosted, but if you don't do it your attack stays the same.
If you press the A button right before an enemy hits you, Mario will shield himself and the attack will do less damage.
Toad Town is the central hub in Paper Mario. You can get to every single level from this town, and some are even located inside it.
Toad Houses are like inns in the Paper Mario world. They are scattered throughout the Mushroom Kingdom and resting in them restores Mario's HP, FP, and star power to full.
Mario observes a map of Shy Guy's Toy Box, the fourth level in Paper Mario.