The Trainer House allows challengers to battle a certain opponent under controlled conditions. The default opponent is Cal, who uses the final forms of the Johto starter Pokémon. However, by connecting the Pokéwalker to that of another player and re-syncing it back to your game, the opponent will be that Trainer instead, with the same Pokémon, moves, and items. Trainers battled this way have their Pokémon's levels capped at 50. Rather than experience or money, victorious Trainers earn Battle Points which may be redeemed in the Battle Frontier near Olivine City.
Pallet Town is a quiet town in the southwest. Two of its residents, Blue and Red, have both held the Champion title at some point in the past. Professor Oak's Laboratory, where the professor researches the relationships between people and Pokémon, is also located here.
Red is not home right now. He defeated Blue to earn his Champion title, but gave up that position with the Pokémon League to continue his training. His mother is proud of him, but still worried that he is alone somewhere.
Blue is away too, but his sister Daisy will offer to groom one of your Pokémon every day, from 3:00 PM to 4:00 PM. Grooming is an important process for obtaining Pokémon like Espeon and Umbreon. After having groomed your Pokémon at least seven times, she will give you Blue's phone number, which will allow you to arrange a rematch with him after winning your sixteenth Badge.
Professor Oak's Lab
Visit the laboratory to meet up with the professor. He claims to have a gift for you, but you must first defeat the remaining Kanto Gym Leaders to receive it.
Afterwards, you can speak to Oak to have him rate your Pokédex. There are currently 493 known species. It is also possible to use the Pokégear to have him rate your progress over the phone.