The party meets a dragon wyrmling as they continue north, but finds their path stopped at the ford town of Hobb's Hollow, whose river and associated Naiad have been corrupted by demons...
The party stops to rest at a trading post, where the proprietors beg them to rescue their daughter, who was kidnapped by strange bandits in dark robes...
Character-Building session. The party meets in a tavern in Vaalghrad, drawn by rumours of demons in the north.