Go to the County Prison (left from Main Street acros the bay). There you get the information on the escaped super villains, and the special anti-power handcuffs you need to use.
When you arrive on Super Power Island, the County Prison is across the water to the left of Main Street. Once you have a Superhero ID from the costume store, you can go there for information.
It is at the far left. Once you have a superhero ID from the costume store, you can get valuable information about the escaped villains.
The bank is Downtown, to the right of Main Street. Once you have your Superhero ID (from the costume store), you can get your information and handcuffs from the County Prison, and then head after the super villains.
Once you have caught the first five super villains (check your Superhero ID), the phone will ring on Main Street. Answer it and get your super flying power to chase Betty Jetty. (see related question)
Get your Superhero ID from the Masks and Capes costume store. You do not have to wear a costume. Once you have your ID, swim to the County Prison left of Main Street, where you will get information from the warden.
Once you beat the first 5 super villains, you get the flying super power to chase Betty Jetty. After she is knocked out by Ned Noodlehead, he becomes a hero and gets the Island Medallion. Ned is in his comic book shop. He is too busy to be a superhero. Give him a hot dog and he will give you the Island Medallion.
The bank is Downtown, to the right of Main Street. Once you have your Superhero ID (from the costume store), you can get your information and handcuffs from the County Prison, and then head after the super villains. Copycat is robbing the bank.
To catch villains, you DON'T need a costume, only a Superhero ID card. Once you have captured the villains, you can copy clothing from other people on the island or just take off some of your hero costume.
You go to the Comic Book Store. The owner is Ned Noodlehead, a superhero fan. He will give you his old handbook once you talk to him. It has useful tips on how to defeat the villains that escaped from prison.
Get your Superhero ID from the Masks and Capes store, then go to the Prison at far left. Once you have the info and the handcuffs, you can head right to Downton to begin capturing the super villains. (see related question)
Once you have your official Superhero ID card (from the Masks and Capes store), you can swim to the County Prison to the left of Main Street. The warden will give you the files on the escaped super-villains, and his assistant will give you the special anti-power handcuffs to use on them.
Once you have captured Betty Jetty, she joins the other five villains back in jail. The warden tells you that Ned Noodlehead received the Island Medallion (he tackled Betty Jetty, after all). Go to the comic store and talk to him about it.