After an uneventful search for the Night Hunter, the travelers bed down for the night at The Last Roadhouse. Early in the morning, they set off again on their journey east with Lady Veil and her servant in their old carriage, which Tulani drives while Arkold rides shotgun.

While on the alert for bandits, they instead encounter a giant-sized rabbit that crosses the road. Arkold decides to try and catch it, since it has a saddle, but loses it in the woods. He manages to find a basket though, filled with creen eggs, a bottle of beer and a Xocholatl figure of Inala – he thus dubs the creature 'The Treasure Bunny' for his future journal.

They take a northern fork to the city of Worms, which turns out to actually be a walled cemetery necropolis! Lady Veil assures everyone that it's safe, while Alptraum's own misgivings get stronger. The strange nature of the place is revealed when they get to the central mansion-mausoleum, and meet their host for the night, Cryptopher – a red-furred, antlered Lapi-Satyr who apparently knows Lady Veil quite well.

The group relaxes a bit as three identical imps lead them to their lavish rooms. There they learn a bit more about Worms: it is a haven for the undead apparently presided over by the goddess Inala (which worries Alptraum), and travelers can only spend one night or else have to stay forever (although the forever part applies only to the undead – mortals have to leave).

After freshening up, the adventurers are brought to a grand banquet full of vampires and other undead creatures. The magic of the place allows them to eat normal food and drink though, while suppressing their undead urges – even Alptraum is told that he can safely eat solid food.

Inala makes an appearance, charming Arkold while admonishing Alptraum to keep the place secret from Sunala. There is a feast, and dancing afterwards which leads to Alptraum leading Lady Veil, Arkold, Tulani and Inala herself to perform the Tarantella on stage. When the dance ends, the group is split up to join various groups with similar interests, and as the party ends Arkold is reunited with Inala and Alptraum joins up with Lady Veil, while Cryptopher continues to try and charm Tulani.