It is in the Northeast side of Veilstone City
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the big building on route 9. the name of shopping mall 9 gives the answr away.
There is supposed to be some sort of NPC that will trade you a graveller for one of your pokemon. I think he's in the big shopping mall building, but I'm not completely certain, as I haven't played Yellow in a long time.
use strength
You can use it to bring pokemon closer. STOP BEING A BIG NOOB! =-)
The Big and Small mushrooms are for selling they can get you some money.