If you feel lost, just wander around until you find what you're looking for. This town has the most convoluted layout in any game ever, so I won't even attempt to describe it. When you gain control of Geralt back in town, follow your guide to the Inn and speak with your friends to complete the first quest.
When combat begins, know that you can't win, so just get beat up quickly to advance the plot.
Chapter II - Iorveth's Path Nightsolo's The Witcher 2 Walkthrough - Chapter II - Iorveth's Path