After their first unsuccessful attempt at rescuing Skullface's little boy Terry from the dungeon, the adventurers return to find the town of Acornloaf apprehensive and afrighted, with the street and fields deserted, and some windows boarded up. The next day, they meet with Skullface to return to the dungeon, consoling Skullface's distraught wife, reassuring her that they will bring both Skullface and Terry back unharmed, or at least alive. Halfway to the dungeon, the adventurers encounter their friend the Pink Slime along the road, dried up and looking quite dead (apparently it had followed them that far). They elect to bring the slime back to the dungeon with them in the hopes that the damp dungeon air will resuscitate it. Upon entering the dungeon, they find flame burning in the fire-bowl held by the statue, and someone (Stonk?) thinks he hears windchimes. They open the portcullis to "room 14" by lifting it enough to crawl underneath. The pink slime is then "laid to rest" in this room. They go through the door to the north and find themselves in a room strewn about with junk, including a throne, a bed some other stuff. Oh, and 2 goblins and 4 skeletons.
The skeletons are easily turned by Bolin, and after damage is taken on both sides, the Goblins are dispatched. But halfway through the battle, a figure rises from the throne, the evil Frog Priestess the adventurers have been hearing about! Ronson casts magic missle, and although rolling maximum damage, the preistess sighs in irritation at the attack. She fills the room with a magical darkness and Stonk is badly wounded. The only visible light in the room is Skullface's flaming sword, but it is unclear whether is is being wielded by Skullface himself or the priestess, Bolin considers attacking the wielder thinking that perhaps the evil Priestess has wrested it away from Skullface somehow, but can't decide - before he himself appears to be attacked by the bearer of the flaming sword - but not by the sword itself. Suspense builds, until the priestess gets frustrated and lifts the spell (and is revealed to indeed be brandishing the flaming sword, an unconscious Skullface found on the floor later on). Bolin and the priestess engage in combat, neither connecting. Ronson throws a snake-venom encrusted dagger at the priestess, connects, and though only doing one point of damage, the poison finds its way to the evil priestess' heart and kills her.
While searching the room and the bodies within, finding keys, gems, other treasures including a magical (?) silver dagger, the adventurers find a secret door leading to a hallway and a dungeon. Inside, Lert, their long lost hireling, is chained to the floor. They unlock and re-hire him, though he is understandably trepidatious. He also knows nothing of Terry. Further along the hallway, there is a door with no lock or handle, only a face with an elongated lower jaw. They feed the gargoyle-lock a few drops of blood and the door opens. Inside there is a beautiful room with a mysterious magical fountain in the center. Flying orbs orbit the fountain, exuding a blue light. Someone (Stonk?) tosses a few coins into the water and the surface turns opaque and mirrored. They ask the fountain where they can find Terry and the fountain shows them flashes of their future path: a cave, a tunnel, something pink, a boy's face!
On their way to the 2nd basement level, they encounter the pink slime, totally rejuvenated! They allow it to follow them downstairs, through the cave and the winding tunnel. Finally, a large chamber opens up, showing the adventurers a giant pink slime shaped into many forms including a what resembles a children's playhouse (or "bounce-house"), inside of which is a captive Terry! On second glance, however, it appears the slime is actually protecting Terry from four stirges (giant mosquito-like monsters). Skullface, upon seeing his trapped son, immediately runs toward him, flaming sword in hand, to free him from the "bounce-house". Stonk yells out to him, "Skullface, I don't think we have to fight this goo!" fearing for the health of the giant pink slime. The party dispatches the stirges and afterwards have a bit of trouble communicating with the giant slime. Difficulty that lasts, however, only as long as it takes for the adventurers' small pink slime friend to merge with the larger slime. A path forms through the slime and Skullface rushes out to grab his son. A dark pool in one corner of the cave bubbles and froths, and the adventurers decide not to face whatever lurks beneath its surface (the Frog God?). They are not hassled by anything else on their hurried way out of the dungeon. The three companions now all feel more experienced and knowledgeable.