The freshly reunited party go down to the docks to investigate the disturbance on the docks, and discover that it's two quarreling parties – from two different trading vessels. A merchant group of dwarves in front of a riverbed longboat, fighting with a group of Elven traders on a larger seafaring vessel.
Maritza and Kobaine talk the first mate of the elves down from starting a fist-fight, and board their ship and begin to tell him about the thing they saw earlier in the day.
Meanwhile Rajis spoke with the dwarves to see what they knew.
They all shared the same story – that no-one saw anything, but a flash of light near the loch. The scout of the Elven ship saw two dwarves around the same time his captain disappeared, and therefore drew the conclusion that the dwarves had taken the captain.
Maritza shared what they knew, and suspected that the captain was infact the prisoner of the ghostly creature they fought in the abandoned outskirts of town.
The elven sailors ventured out ahead of the party, raring for a fight to rescue their captain. The party, with Helena in tow, followed but were not able to keep up due to Rajis' exhausted state.
As they approached the building they heard the creature's wail, and feared the worst.
Coming up to the front door, they saw the body of a fallen Elven sailor get dragged into the house, which the creature – now horribly deformed and scarred – was arranging in some kind of sick marionette/mannequin arrangement.
Maritza rushed in to fight, and stabbed at it with a dagger enchanted with thorns. The creature struck back, dealing a critical blow to Maritza. Rajis, exhausted though he was, run in and pummeled the creature which he recognized as a Banshee with his Maul – channeling his divine energies. Maritza finished it off with a keen shot from her bow.
The party managed to resuscitate 4 of the 8 Elves and the ice around the 9th Elf melted in the room – and Rajis and Kobaine recognised the Elf – not only as the Captain of the vessel for whom they searched, but as the Elf who had approached them at the Stut in Madron-don.
The survivors venture outside into the light of the sun.