Continuing up the coastal road by moonlight, Kurako (I believe) spots some movement in the water below. Holostarchander uses his magical abilities to send a flare of sorts down to light things up, but what ever Kurako thought she saw had managed to flee. After some further investigation, the party continues onward.
The party, now on high alert is able to spot the kua-toa (frog men things, NOT merlocks or any other WoW enemy) waiting to ambush them farther up the road. Their large eyes practically shine in the moonlight. Despite the characters and players being bogged down in combat, things are made slightly more exciting due to the kua-toa's sticky shields. From what I recall, Flacco does some slinging, Holostarchander lets loose some flames, Stetta nearly looses her club, someone else does lose their weapon, and the last kuatoa goes sliding, face-first down the cliffside to the water.
The part is victorious, Flacco finds a ring (IIRC), and Stetta gives Terrence a gift. The gift consists of a kua-toa hand on a string as a nice trophy of the battle. Terrence rejects Stetta's gift and, this being the last straw, Stetta runs off into the night, broken-hearted.
(Is this all we got done?! Sheesh, I really need to figure out how to streamline combat or something.)