Here are the 7 Dragon Balls scattered throughout the world in the game. Once you collect a Dragon Ball, it will be held in your "Key Items Bag" until it is needed later.
Once you collect all 7 Dragon Balls, you can take them to the Old man near Kami's Tower to summon Shenron (Lvl 60). After you summon him, you are allowed to catch him. Only hand in the DBs once you are ready to catch him, because you only have one chance to fight!
Dragon Ball 1 Edit1-star Dragon Ball: In the truck, in the port of RR Base.(You can enter by surfing)
Dragon Ball 2 Edit2-star Dragon Ball: behind a rock on an islet(Route 20)
Dragon Ball 3 Edit3-star Dragon Ball: In Mt. Moon, when you beat the trainer at the end. (before the exit of the cave)
Dragon Ball 4 Edit4-star Dragon Ball: On the Indigo Plateau, just before the center.
Dragon Ball 5 Edit
5-star Dragon Ball: In Capsule Corporation, after defeating Pilaf.
Dragon Ball 6 Edit
6-star Dragon Ball: On Route 10, hidden near a tree. There is a row of trees, the ball is upwards.
Dragon Ball 7 Edit
7-star Dragon Ball: On Route 8, in a corner (to the north), over the rock tunnel.6
Old Man Edit
When you get them all, go to Makyo Town and talk to the old man near the tower so you can summon Shenron.