Based on those notes, the PCs decide to go after Wyrmlord Saarvith's "special mission" at Rhest (ruined human city by the swamps near Lake Rhest - destroyed several hundred years ago by water). They spend some time buying supplies (Sviar makes a few scrolls). They trade a +1 breastplate for horses and gear and set off again on day 9. They plan to warn all the towns along their way (aided by a letter from the authorities at Drellin's Ferry). The first day, they overtake some refugees from DF, and encounter some giant wasps, then reach a town to spend the night.
Elves: Killar Arrowswift; Sellyria Starsinger, Speaker for the Tiri Kitor; High Singer Trellara Nightshadow (whose brother was killed). They call this place the "Blackfens." Hayli asks about "Soaringhome Garth". They say it is a mountaintop home to the winged elves, far to the east.
They kill all the hobgoblins inside fairly quickly, without raising the alarm, taking one prisoner. About 40 minutes later, they notice some kind of ruckus over at the big building, and someone taking off on dragonback. Sviar shifts into pegasus shape, Hayli leaping aboard as they give chase...
They manage to lure the dragon and rider back to the tower, where they wound it badly and kill the rider (Thurirl's summoned hippogriff does a snatch and drop.) The dragon flees, but two very lucky shots by Hayli brings it down. Meanwhile, they've attracted notice from the big building. They go over in a boat, and after some more fighting (involving ogres, an ettin, and a hobgoblin spellcaster). There is a difficult moment as the spellcaster dominates Inconna to attack Sviar, and suggests to Tylan that he take the elf away to safety on the shore, but Hayli and Thu manage to save the situation.
They find another greenspawn razorfiend in a flooded shed. Although it escapes, Sviar (in altered form) swims around for the tedious process of searching out all the eggs in this nest. Searching the building, the group finds much treasure. Also a letter. The adamantine chain that detects as magic and evil is inferred to be a lich's phylactery ("the Ghostlord").
The captain thanks them for getting the elves to sign up, etc. Asks if they are willing to assist with a concern of his. A local lord (Denovar) sent to the neighboring city for assistance and gold to the south for a mercenary troop. He was forced to send the gold with only a handful. The captain wants the PCs to head south with the captain's signed missive and become backup guards to make sure the gold gets through and the mercs on their way. The guards left two days ago by wagon. Their route takes them to Prosser and Dauth on the way to the Hammerfist Holds. As this happens to be where the PCs wanted to go anyway, everyone agrees.