A group of adventurers set forth under the employ of Lady Staul in order to find her missing husband, the explorer Douven Staul. However, her caravan was beset by kobolds en route to Winterhaven, Staul's last known location. The kobolds killed Lady Staul and routed her retinue.
The survivors included the human warlord Oglar Tanner, the eladrin rogue Orrik Blackhat, the half-elf ranger Linka, the human fighter Erik, and the shadar-kai bladesinger Staufman. They banded together and made their way to Winterhaven to find the missing explorer and perhaps some treasure at the dragon burial site he was supposedly excavating. En route to Winterhaven, they were set upon by a band of kobolds, the same beasts that killed Lady Staul.
In Winterhaven, the party headed to Wrafton's Inn and met several figures of note. Valthrun the Prescient, the town's wizard and sage, was approached by Staufman. The elderly wizard showed great curiosity in Staufman's race, but seemed guarded against answering any questions.
Eilian the Old, a weathered and talkative farmer, told the party about Douven Staul and his last known whereabouts. He drew a map to the dragon burial site for them, deep in the woods about a half day's journey south of the town.
Orrik attempted to engage a mysterious elf in conversation, but she refused to acknowledge him. He tried to meet her behind the inn late at night and convince her he was following the rest of the party, but she didn't believe him.
The rest of the group went to the castle of Lord Ernest Padraig, Winterhaven's ruler, and learned that the kobolds were becoming a great menace to the peaceful town. Their attacks came with increasing frequency and they seemed to have advance knowledge of trade wagon schedules. He promised the sum of 100 gp if they were to root out the kobolds from their lair in the woods south of the town. He drew a map for the party showing their location behind a waterfall.
The party rested for the evening in the inn and prepared to set out the next day.