Having finished their investigation of the murder of Lucia Vorloi (turns out, it was Antonito Radu, who was connected with the Veiled Society), the party looks for henchmen. Darwain finds two, whom he hires: Wyleth, a warlock, and Duggan, a dwarven Craftpriest. They decide to head back to Threshold, due to rumors of undead incursions. On the way there, they run into a large group of 54 bandits. They trade arrows for a few rounds, but are overwhelmed and retreat, leaving their wagon behind with 900 gp worth of textiles. (Somebody should do something about those bandits!)
Once in Threshold, they hear that a necromancer has established two forward bases, one in the hills northeast of town, and one in a swampy areas to the southeast. The party decides to head to the Barrow of the Oathbreakers in the hills, first outfitting themselves with silver weapons. They search the barrow, sadly passing up the chance to drink from a magic fountain. There seems to be nothing in the Barrow, but behind a secret door is a large stash of treasure, with a warning not to take anything. After going back and forth, the Cobalt Cavers decide to heed the warning, and head back. On the way back, they see a lone pegasus flying overhead.
The next day, the Cavers head into the swamp. There's an obvious entrance with several statues, but they look for a back way in, and find it. Just inside the entrance is a corpse infested with rot grubs, which they kill with fire. Exploring further, they encounter a pair of wights. The warlock is able to use his power over undead to control the wights, which comes in handy when they encounter a lieutenant of the necromancer, a spectre. The wights are able to absorb the bulk of the attacks from the spectre, who falls to their attacks. Still, there is nothing to indicate where the necromancer's lair might be.
After taking some time to divest themselves of the treasure found in the Tomb of the Swamp Ghouls, the Cavers receive a note from their old friends and rivals, the Mad Dogs. They are in trouble, with Zanzibar reportedly being held captive by the Sisters of Fire and Water, undoubtedly for nefarious ends. Vincent sneaks around the Sisters' fortified hospital. They find stairs going down, and go to investigate. Darwain is shocked to find a manticore in a large room at the bottom, and immediately flees. The Cavers leave the dungeon to do some research on manticores.
When they return, the Sisters are not happy to see them, but Vincent takes a nun hostage and pushes through. They are able to slay the manticore, but the complex that awaits them is strange. Linoleum covers the floors, and the walls are white and antiseptic. Strange moans fill the air, along with a dank mist. The party chats with a ghost, vowing to return his arm so he can rest. There explorations lead them further to a room with a gore-covered chair. Two grey humanoids, with arms too long for their bodies, lie in wait for them there, their too-long tongues savoring the blood and viscera. They are quickly dispatched.