The party found themselves in Murghôm , unsure of how they got there. They met Coboj, who claimed his "lord prince" had directed him to lead them against goblins who had taken over a nearby village. Along the way they slew two goblins who were escorting a woodcutter, but the woodcutter also was slain by an arrow. Coboj said he chased off a third goblin who had shot the arrow. The party began to be suspicious of Coboj. Nonetheless, they loaded the woodcutter's body into his woodcart and headed to the town. At the town the party scouted the area but did not enter the town. Two goblin guards came out to question them, and during the conversation Coboj retreated back up the road. One goblin noticed the woodcutter's body and was about to raise the alarm! But Coboj's retreat, combined with what they had seen of the people's behavior about the town, had finally raised the party's suspicions enough that they were able to overcome the psychic deception they were under, seeing that the "goblins" were actually human guards. After apologizing to the townsfolk and staying under guard for the night, the party met the local lord. This was the gold dragon prince Chelnadatilar, who explained that the deception was the work of the neighboring sapphire dragon prince Domborcojh. The party would not be punished for their actions as they were not in control, but justice demands that they serve Chelnadatilar for some time to atone for their accidental misdeeds.