After a meeting with the Mayor, Sheriff, and their new acquaintance Shelalu, the group decides to stay in Sandpoint while the Sheriff heads to nearby Magnamar to petition for more troops. After the meeting, they decide to interrogate the captured Goblins, but their efforts are in vain, as the horrible creatures tell them little of interest.
The next day, the newly anointed heroes make their rounds throughout a now quiet Sandpoint, enjoying the cool sea breeze and admiring looks of the now sparse villagers . Their calm morning is interrupted by the worried cries of Bethana Corwin, a barkeep at the Rusty Dragon. She tells the group in a panic that Amieko, the Inn’s proprietor, as gone missing. She shows the PCs a note from the Innkeeper’s brother, that suggests he had something to do with the Goblin attack, The note also asks her to meet him at the Glassworks at midnight.
The group heads to the Glassworks only to find the building overrun with Goblins.. After dispatching the monsters, they find the live in staff at the Glassworks all dead, murdered in their sleep. While scouting ahead, Arbuthnolo finds Amieko bound and gagged, but before he can act, a mysterious assailant shoots him in the back with an arrow, grievously wounding him. When the party catches up to the Gnome, the assailant has fled through a secret tunnel.
The group takes Amieko back to The Rusty Dragon and rests for the night, posting a watch at the tunnel entrance. The next morning, they head into the secret tunnel to investigate an unexplored branch.
They walk for a mile in the cramped tunnel before finding the ruins of an ancient underground temple. They find a statue of a Runelord, before encountering strange twisted creatures that bestow horrible visions of lust with their touch.
Upon investigating the temple, they encounter a small demon that summons the strange creatures from earlier, but then disappears. They investigate a bit further, but are forced to return to town and rest up before completing their investigation.