The next day saw the bandits in a state of near panic. They had just enough muscle left to keep control of the settlement, but were to scared to leave it and no longer trusted the serfs they were using as backup; Dracos's leniency towards these serfs was paying of. The other serfs were also in a state of near panic. However because the farming serfs had not suffered compared to the bandits, they were continuing to get on with normal farm work - for now. There were still 2 bandits plus the Leader, and 5 thugs still on their feet, the other thugs were still too burned or crippled to help out. And Dracos had taken their weapons. The 4 ghouls had been locked up in one of the sheds. Dracos decided that that night he would try and finish it.

At dusk Rhodri, carrying certain supplies, rode with the dragon dogs to hide some way from the gate of the bailey, while Dracos flew inside. As Graculus could not see well at night, he had been left with Butch, Hiku and the Oxen. Dracos surprised the two thugs on guard at the gate and crippled them. Then he transformed the two guard dogs into dragon dogs, flew up onto the roof of the keep and waited. Shortly after it got dark, one of the bandits came out to check up. Dracos electrocuted him, administered the cursed potion, and then freed the other ghouls. They and the dogs could wait outside the keep unless needed. Casting chameleon, Dracos went into the keep and went to the room were he had scryed the other bandit and dealt with him. Instructing the new ghoul to follow him, Dracos then scryed that there was one thug still awake. Thus thug was dealt when he went to look for the bandit that had gone outside. Then Dracos was free to deal with the bandit leader, and then the 2 remaining thugs.

Calling Rhodri inside, Dracos ordered the ghouls to find and collect up all weapons, armour and valuables (which all meant the same to a ghoul's simple mind) and put then in a secure room. The 9 thugs were collected up and put in the hut that the ghouls had been secured in. The ghouls were told to keep the thugs in the hut, for what that was worth, while the dogs were told to guard the gate. More intelligent retainers were urgently required. After a few hours rest, and leaving Rhodri to mind the keep, Dracos flew back to the Hiku, Butch and the oxen. By dawn, Dracos had arrived back at the keep with the rest of their party. The occupants of the hamlet were watching apprehensively from within their huts as Dracos had not yet returned to human form.

The next thing to do was to release the six frightened slaves. Dracos released the slaves and, after finding out why each was now a slave, offered them a choice :

1. Leave and labour with the serfs in the village.

2. Leave and take their chances in the woods, which were filled with all manner of dangers (this was true, but in this valley and nearer to the village they would be fairly safe, apart from the odd bear, cougar or wolf pack)

3. Serve as dragon retainers. If they proved worthy they would receive certain powers from him, but they should remember that All Magic comes with a price, in this case their appearance. Dracos did not elaborate except to say that they would still be able to have human wives and children.

They quickly thought it over. Some asked if they could see their families and Dracos promised the two who had children that he would get their families here. However they were uncertain. However, Rhodri then decided that to set an example, to take the potion, and in full. Dracos did not get him to drink it, yet. By using only skin absorption of the potion, Rhodri gained a scaly tailed body, but no wings or reptile like head, or magic ability. However, using his magic, Dracos then demonstrated that could transform Rhodri back into human form. Dracos then gave Rhodri a dose to drink. With a little aid from Dracos, Rhodri was able by himself to transform between wingless reptile headed retainer and human form. The potion would give Rhodri limited lightning magic, but he would need training. Dracos could also give Rhodri an amulet to provide magical abilities later, unless he gave Rhodri the special Dragon blood potion, which would give Rhodri wings and greater magic.

After this demonstration by Rhodri, the prospective retainers all agreed to have the potion administered. Dracos only used skin absorption of the potion, drinking it was for later if they proved trustworthy. Rhodri then gave them orders : two to get whatever armour and weapons were in the keep or on the oxen, two to guard the gate, one to feed the dogs, and the last one to go with Dracos and attend to the thugs. They would now be chained up with the bandit mage and later healed by Dracos.

Finally, taking two of the retainers as well as two dogs as guards, and with Dracos and Graculus keeping watch from a distance, Rhodri went into the hamlet to take control. Even though he was in human form, Rhodri had a problem persuading the frightened serfs that it was safe to come out. Once out, they soon had to accept that they were under new management. Rhodri stressed that The Dragon Lord he served was a magical being of great learning who planned to improve the settlement. By the end of the day, Rhodri had got a basic plan of what was required to get the village running properly. The two draft oxen would be invaluable for plowing and lumber work, but a couple more were needed. Proper lumber yard tools were needed as well as a blacksmith. The younger son of the village blacksmith could do that. All that was needed was secrecy.

Rhodri made up a list of tools, domestic animals and personnel who would be required, while sketching out a plan for the manor, Garth Dracos. Dracos would have to arrange to get the items, and for now with some secrecy. Alcina could help with purchasing at the village end while Dracos arranged the transport. Dracos also needed somewhere decent to stay, particularly for when the family moved over here; now if he could copy the layout of his house and store it as a picture, a memory, in a magic crystal, he could use magic to recreate the entire house provided that the raw materials (wood, stone, clay, metal, glass) were on hand.