All members of the party are captured and thrown in a dungeon (presumably for stealing a shipment of gold, for the illegal use of magic in city limits, or for disturbing the peace at a lovely local eatery called The Dancing Dragon). After quick introductions they look for anything useful, pick the lock on their cell door and investigate some of the others. While walking the profoundly long distance of the corridor the group is mildly startled by a few guards escorting another shackled prisoner (Fenthur) to the cell they so briefly occupied. They charm the guards and are ushered like royalty into a line-up, asked to read a sentence, and then allowed to roam the dungeon at their leisure, so long as they eventually return to their cell.
In the antechamber to the interrogation room group chooses to investigate a set of doors. The doors lead to a long narrow magical chamber with a oddly treacherous floor. The majority of the party falls down a steep ramp into a metal cage while two members skillfully avoid the trap and remain upstairs solving riddles, entering their responses by stepping on certain stone tiles on the floor.
Some members of the group struggle to free themselves from the cage while others excel at it (but at times struggle to help their cohorts). Animated suits of armor attack the members of the party that remain upstairs. And the group flees, albeit after checking (or attempting to check) a few chests, through doors two floors down and in the back of the chamber, only to find themselves in the same room that they started in.
Their captors are mildly surprised to locate them back in the antechamber. They inform them that they have been given a full pardon and return all their adventuring gear and weapons.
On their way back to The Dancing Dragon to question Lydria street thugs attack the group in an attempt to capture or kill Yamaraja who has had a price of 50 gold pieces put on his head. The group mightily defeats the ruffians.
Lydria has little information for them but she sends them to talk to Marty the Mage, a wizard that lives in a dirt hovel near the fork in the road outside of town (the very same wizard that disappeared from the tavern during the brawl).
He is hostile towards the group for their lack of magical knowledge and ability. The group calls it a night and lives to investigate the mysteries of Good Harbor another day; a day when they may potentially fight tooth and nail to claw their way to second level.