kymkatt you will need to get more than one clue.
without giving out a spoiler, you will get a series of clues that further eliminate townies.
That is, at the moment you have clue 1. IS East (right) of Racetrack. You may *eliminate* all townsfolk that are NOT east of the racetrack.
You may get another clue eg 2. IS a woman. That means you can eliminate all townsfolk that are not women.
And so on and so on. Until you gather enough clues to narrow it down to just one townsperson.
When you have done that you go back to the Case tab and click on Capture.
Choose the towny in question, and THEN you we instructed to go to the next city. As Each Villain Hunt comprises of a 4 cities (that is no secret I'm sure).
Hope that helps a little.