The story begins when four adventurers meet at a festival in the bustling town of Sandpoint. The Swallowtail Festival is in honour of the opening of the new cathedral and a remembrance of the Sandpoint fire, when the old place of worship burned to the ground.

Since Obetu was local and seemed friendly enough the others decided to allow him to be their guide around the festival. They took part in various games and thwarted the local Scarnetti leader Jubrayl Vhiski's attempt to swindle the people of Sandpoint. However, before long the festival was brought to an abrupt halt by a goblin raid. Goblins swarmed the streets, killing indescriminately and setting fires, but the raid was ultimately thwarted by the adventurers and the local town guard. Before the raid was over the goblins made an attempt to kill a local noble named Aldern Foxglove.