Following a night of revelry at The Last Stop Inn, the adventurers pack up their belongings and head out west with a caravan of farmers and merchants in the company of Captain Gheran Thanyne. When the wheel on Beppo Gren’s cart cracks, the party scouts out the northern area beyond the road and stumbles across a skirmish between Elves and humans. Not knowing what the fight is about they hold their ground until the fight ends with only two elves alive and one human fleeing off further north into the forest. Both the leaders of each side perished in the fight, and the elves are quite distraught over their loss. The party learns that a young girl from the town of Rydern was traveling with the group of humans, who they discern are from the north, and when the Elves (familiar with the girl) asked why she had been there, the situation got tense and finally escalated into blows. Both the leaders, of the humans and the Elves, die in the ensuing battle, and only 2 Elves remain and one human retreats into the woods to the north. The girl, languid and seemingly unaware of what had just taken place, returns to the caravan with the party and the elves where Gheran tries to figure out what has happened. Gheran is familiar with the Elvish leader, Wandasaadi, and is distraught over her demise. The surviving Elves carry their leader’s body off to the south and the caravan continues on toward Rydern.
Upon arriving at Rydern, the caravan is greeted by a group of Northerners led by Ander Gryx’t whom the girl, Beryl seems to recognize. Ander promises to return the girl to her family and Gheran tells the party that he will accompany Ander and try to uncover something, anything about what the hell is going on. In the meantime the party is to get some rooms at The Fire Pit, a tavern Gheran frequents owned by the amiable Oloroan “Olo” Droversin. That evening Gheran meets with the party and describes “a situation” in the village across the lake, Joon. Apparently some kobolds have been helping themselves to resources the good people of Joon have worked so hard to collect. Lumber, ore, and livestock have begun to disappear and Gheran fears that it won’t be long until a confrontation with the kobolds results in loss of life. Also, one of the farmers thinks he may have spotted a dragon, pale as the snow-capped mountains, gliding furtively across the night sky. Gheran believes, under Drennor’s influence, that the party is capable of rooting out the kobolds and discovering the truth about the supposed dragon sighting.