its a Linux issue, make sure the file name match in case too. It looks like I didn't match case with the town data file when opening.
as you see you have 2 dat files now(one will be roughly 64.5k the other probably 0), So the town data isn't being loaded hence nothing works. Not an issue I have running Windows nor Fellippe running Mac, so it took me a while to pick up on it.
so if you change this line(40):
OPEN "PhantasyStarTowns.dat" FOR BINARY AS #1
to this
OPEN "PhantasyStarTowns.Dat" FOR BINARY AS #1
it should be fixed.
I just didn't catch when you originally said "grassed area". I may add signs in the game that read "Keep off the Grass" cause you can't walk on nearly any the grass areas in towns, only paved areas!
But yeah let me know if changing that line makes the difference.