This is what the faq says but it's *wrong* and I don't know where to go.
When you enter, go North and ride the block to the next floor. There are Mystical Chests at the Northeast and Northwest corners of this area, and a lift to the next floor in the North-centre. Run around the edge to the South side and you'll find two lifts, take the block, not the glowing white elevator. Step into the white light and choose to ascend. When you examinethe object in front of you, you will be taken to the Tower of Kagutsuchi.