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Most of your down time in Vindictus will be spent in the town of Colhen. Think of it like Dome City in Global Agenda or the subway stations from the ill-fated Hellgate: London. It's here you'll be able to barter and trade with other players, and it's here you'll do all your shopping and all your between-mission stuff. There's a bulletin board that serves as an auction house of sorts, but its interface isn't exactly optimal. My advice is that if you want to find anything, use the search function to look for it by name.
The quests or missions themselves are given by the NPCs stationed in each building. The Inn, Blacksmith, etc. are each privately instanced little spaces while the outer town itself is shared and split up into different channels depending on how many players are in each one. This works well enough at keeping the place not-too-crowded, but can making meeting up with friends a difficult task. Luckily, there's little need to actually meet up in Colhen itself, as all of the adventuring will take place in its own separate instanced dungeon.
The inside of each building in Colhen is not really a physical space, but more of a rendered space that represents where you're at. The inn for instance shows a bunch of beds and a fireplace. But they're not exactly places to explore. Instead when you enter a building, its tenants' portraits will be placed in a little UI window in the lower left, and by clicking each one you can interact with them. Whether it's for crafting items, progressing the story, or adding to your abilities, it all takes place in one of the town's many buildings. Sure it would add to the immersion if these buildings were actual spaces to explore, but this setup is functional, and anyone who has played a game like Nintendo's Fire Emblem series will be right at home.