The group arrives in Hommlet, to find their welcome cold. After a while, they determine the situation. At first worried about helping due to the risk to the hostiges, after speaking with Burne, Jaroo Ashstaff and Cannon Terjon, they determine that, in all likelyhood, the bandits would not harm the hostiges if attacked by outsiders – such as them – unless they recieved help from the locals.
They head to the Moat House. There, they face giant frogs, as well as the new bandits that killed Elmo and Spugnoir. The bandits appeared in the midst of celebration, having just gained a large crate of holy water and potions (worth a fair amount) from a raid. The party disrupts the celebration, attacking the bandits, including a mage wielding a magic dagger, the leader, in magical chainmail, “the boss’s girl,” and a leutenant with a magical shield.
The party defeats the bandits, managing to take some of them captive. While disucssing what to do next, they catch Zert attempting to sneak past them to head downstairs. He offers them a letter he carries on him from the leader of the real bandits, downstairs, in return for his life. They agree, provided he leaves and never comes within fifteen miles of Hommlet. The letter confirms that the main bandits are working for the Temple, and identifies the leader as a follower of Lolth.
The party returns to Hommlet, and hands over the bandits to Calmer, who assures them that justice will be done. A copy of the letter is given to Cannon Terjon, who says he will send word to his superiors, hoping that this will spur them to send him more assistance. Meanwhile, Brother Anson takes the origional letter to Greyhawk to report to the Cardinal.
At the same time, the group manages to discern who the crate of objects was stolen by the bandits from, and return it, sending it to Verbobonc, where the merchants who lost the items are based.
The party agrees that the likelyhood of swift, decisive action being taken by either church is low, considering the amount of resources currently dealing with other, equally powerful evils that appear to have risen in other corners of the continent. At the very least, they must rescue the hostiges unaided.