In the second episode, the heroes follow up the letter they found in Beardless's satchel. They know there are two captains in Cragmire - Captains Eaglemite and Darkshire. They are unable to determine which is implicated in the letter until an assassin appears at Corky's bearing Beardless's Arm, embued with magical powers, and indirectly fingers Eaglemite.
Over the course of the adventure, Pargamite is again taken captive. Eaglemite's reputation is cleared by the party and Darkshire, the guilty captain, is brought to justice. Doren and Addervane cement their reputation following a stirring soap box sermon by Addervane in the town square.
They learn of a Drow threat beneath the mountain, finally defeating a drow wizard, D'Enthrich, who was coordinating one of the drow units.
Eventually, Pargamite is again returned to his throne but the evil lurks below more threatening than ever.