Marcus and Vandoren arrive in the camps of Kirke, while Renton and Owen depart for points unknown. After a brief council, the adventurers decide to investigate the stories of the enchanted sword Legrand, lost in the ruins of Bleary Knowe. Vandoren recalls that this site is associated with a murderous spirit known as the Redcap, so called because he dyes his hat in the blood of his victims. Bleary Knowe overlooks the river that separates Selcrany and Harplan, and lies a league east from Kirke’s camp, beside the small village of Aedwell. The citizens of the hamlet are rather suspicious of strangers, and the parish priest, Father Julian, is little more hospitable, denying any knowledge of the Knowe or the Redcap.

The consortes scout out the ruins before darkness falls. Bleary Knowe was a small watchtower or peel overlooking the river valley, but it is now naught but a jumbled pile of stones. The group returns to Aedwell, where Marcus prays to the Five and compels Father Julian to speak truly of what he knows. Julian reveals that the Redcap is greatly feared by the inhabitants of the village, who stay well away from the ruins after dark. In turn, the Redcap cannot enter the town for fear of hearing the bells of the parish church.

The next day the group returns to the ruins, looking for secret entrances or underground passages, but none are forthcoming. Friar Sidrach prays to the Five to show him the Knowe as is really is, and the Gerardian reports that he can see the tower whole and intact, where the others see only rubble. Vandoren locates a small crevice that might lead to an open space beneath the ground; by singing a magical charm the minstrel transforms himself into a vapor and seeps down through the cracks. It is utterly dark beneath the surface of the earth, but Vandoren senses he has entered a large chamber or underground hall. He hears a strange clanging, and withdraws to the light of day.

The group recesses back to Aedwell, and then returns to Bleary Knowe after the churchbells sound vespers. As they approach the shadowy ruins, they are surrounded by three shambling forms that creak and clatter toward them. By the light of Friar Sidrach’s pentifix, the three black and twisted tree-like monstrosities attack. Vandoren sings up a charm that evokes the sound of the churchbells; at this noise the tree-things hesitate long enough for Valerius to conjure up a hideous thicket of writhing tentacles. The tentacles promptly tear one of the tree-things to splinters, and in the following battle the other two are hacked up by sword and axe, while Valerius and Friar Sidrach call down magical fires.

The group then notices that the tower on Bleary Knowe seems to have miraculously reassembled itself, and now stands looming against the nighted horizon. The entire hillside radiates strong magic. As the consortes approach the peel, they hear a wailing in the darkness. They soon find that the plaintiff cries are coming from a skull lying on the ground. The skull claims to be that of the missing Wyatt, and begs the group to bring him release, telling how the evil Redcap murdered Wyatt and chopped off his head.

As they approach the great entrance-door to the peel, four stony shapes are vomited from the ground. Monstrous creatures twice as tall as Hamral, these rock-things attack. The creatures prove themselves to be incredibly tough and strong—each blow they land is enough to stagger a man. Valerius conjures up a spirit of the air to combat these spirits of the earth, but the battle is long and difficult. Valerius then conjures up some oily pools which make the stony creatures slip and fall; so incapacitated, they are defeated. The great door then opens up wide, as if in invitation, revealing a twisting staircase leading down into the ground.

Most of the company is badly wounded, and Friar Sidrach, Marcus, and Vandoren uses much of their healing skills to restore everyone. The group considers retreating back to the village, but they vote to press on. To this end Valerius calls up a couple of Aoxians who fly down and investigate, returning with a description of a great hall of skulls. Valerius then sends them to explore the upper stories of the peel. The Aoxians fly through an open window, and report that an unoccupied bedroom lies within. St. James shimmies up the wall with a rope and soon all of his companions stand within the bedroom.

The chamber is small, the bedframe made out of yellowed thigh-bones and matted with straw. The walls of the room are lined with old knives, axes, and saws, stained with rust and dried blood. St. James reports that the straw is still warm.

Moving further inside the peel, the consortes discover a large kitchen. Upon a great table lies a heavy iron pot, lined with pastry crust. A rolled out pastry cover lies beside. Over a roaring fire a heavy black cauldron bubbles with a thick, meaty stew filled with carrots, cabbage, and onions.

Another room contains only a grindstone, several large knives, and stairs receding down. Once the consortes are within, the door shuts closed by itself. One of the knives floats in the air and begins to grind its own edge upon the whetstone. In the meantime, a clanging comes ringing up from the stairs. Valerius conjures a thick mat of webs to cover the stairwell, but as the consortes watch, a pair of iron-shod boots comes leaping up the stairs, unhindered by the webs. The boots dance up and into the room, clatter around for a moment, and then a strange little man materializes into the boots. He bears a long pikestaff, has great yellow eyes and long yellow teeth; his withered limbs end in bony claws. And on his head is a great cap, colored dark red.

Valerius attempts to parlay with the creature, but the Redcap laughs and springs into battle. The consortes find that it is extremely hard to hurt the little man: most weapon-blows and spells bounce off his hide like water, and what’s more, the creature’s wounds seem to knit of their own accord. In the end, though, persistence pays off. St. James dashes into the fray and with his magic dagger slices open the Redcap’s throat. The creature howls and then dissipates, leaving behind only his iron shoes, which Valerius claims.

At the bottom of the stairs lies a great hall, filled with numerous piles, sorted by contents. One pile contains nothing but hundreds of shoes, stacked to the ceiling; another pile contains belts, another cloaks, and another, hats. There is a small pile of gems, and a larger pile of coins, including many of ancient stamp not seen on the Frounter for untold years. In a pile of swords, Valerius is able to identify a magical blade, presumably Legrand, which Sir Hamral claims. A queer little well contains water that seems to give Valerius and Vandoren magical prowess; within the well are a couple of daggers.

Laden down with recovered goods, the consortes return to Aedwell at cockcrow. Behind them, the tower on Bleary Knowe has reverted to ruins. Father Julian is sorely surprised to see them return at all. Valerius takes the iron shoes of the Redcap and hangs them in the parish churchbells for safekeeping.