The PCs press on through the arena level, looting the armory that once supplied the hobgoblins. They come across a room with a clear pool of water and an unfinished statue of a man holding a sword aloft with a giant serpent wrapped around his legs. Opening the door on the south end of the room the PCs are surprised by a lightning bolt that bursts from seemingly nowhere. A dark naga becomes visible and attempts in vain to devour the PCs, who overwhelm and slay the monster quickly. They loot the chest in its lair and take the key from around its neck to unlock the door on the north end of the room.
The PCs find a narrow bridge crossing a massive chasm. After Rothgar begins to cross a pair of gargoyles flies from the shadows to attack the party. Within seconds several clerics of Iuz and their summoned dretches join the fray from a nearby room. A hard-fought battle follows, leaving several of the party injured and the minions of Iuz lifeless on the dungeon floor.
The party moves on to find the main attraction of the dungeon level, the arena. Inside man briefly introduces himself as General At-Ur Rehmat before leaping down to engage the PCs. His fiendish companion, the blue dragon Tyraniss, attacks the party viciously. Several of the PCs are injured by Rehmat’s swordsmanship with Damaris’s Blade of Chaos, but Iuz’s general falls before the fury of the PCs, along with Tyraniss. The party recovers the blade and loots Tyraniss’s lair.
In the cells the PCs find a thief who introduces himself as Fidd Dulamin. He begs they release him and promises to stay out of their way. His only interest is safe passage back to the City of Greyhawk.
When the PCs reach Rehmat’s quarters they find a goblin speaking to a glowing skull. The goblin is petrified when the PCs appear, referring to the voice in the skull as, “master,” and begging it to save him from the PCs wrath. The voice in the skull tells the PCs that they will pay for meddling in its affairs. After revealing that this, “master,” is somewhere in the dungeons of the castle the skull explodes. A vrock appears suddenly, releasing a cloud of demonic spores. The PCs kill the demon, but not before the goblin succumbs to the burrowing spores. The level clear and without any evident exits, the PCs begin to make their way back to the free city.