The Daring Dragoons are on a boat (Ma-na, ma-na), captained by Jesber. He tells them a ghost story: Long ago, there were good Merfolk who helped people and made things good. But then, the "Dark Mists" came, and so too came the scaled ones. And now, every night, if you don't put out a basket of fish head, you'd get your first-born child snatched up. But, that hasn't happened for a while.
The Dragoons have smuggled a group of 13 werewolves into the cabins of this ship, and, the Dragoons are having difficult time trying to get Jesber to avoid going down there and seeing them. There are a lot of shenanigans pulled, including casting Friends on him, to persuade him to not go down there, and using Zin's Fey Presence to charm him. These shenanigans only serve to make him angrier, and so Val casts Sleep on him. In celebration, everyone fights each other.