OK, your time with the Mercs is over. You're now captured by the dryads. The prisoner on the left tells you that you're in the Dryad City and that the Morden felt the mercs (i.e. you guys) were expendible. You have controlling rings on your necks that keep you in line. You ask the guard about Drevin and are told you were found under the body of a blue haired elf. You're now in the town of Eirullan. Warden Celia is in charge, and it's a Ring of Submission on your neck. Warden Celia shows up and you get to see how she deals with insolence as one of your fellow prisoners is slain.

Amren the elf asks Celia to trust you and give you a chance. Celia tells you that your medallion is locked up in her possession. I told her "Valdis paid well" and she is concerned that the Aegis of Life is now gone. She has a task for you. She wants you to take sharpening stones from the weaponsmith to the Dryad Outpost. "At the temple?" No, Aegis was at the temple. Why was it stolen, she asks. "I don't know" ... but then the only remaining thing to say is "no choice" which I personally didn't like much. I really think they should have more dialogue choices here.

Anyway, she warns you that jungle animals carry the plague and to get going. First, go left to the gondola and pull the lever to move to the central Merchant level. Go straight and talk to Telinu, giving the "truth" answer. She asks for a favor - "Yes", "how hep?" She wants the tome of Smithing, to learn how to repair dryad armor. "Where?" She says the lift to the SE leads to the Great Hall. Unfortunately prisoners can't go there, so you'll have to wait for that quest.

Other people in this central area that will sell you things and buy your loot are:
Elenu, the mage

Enchantress Lumilla - she can enchant your wepaons and armors. She wants you to find 4 nettle dusters for "Lumilla's Salve".

East lets you activate a teleporter which will come in handy later on. The chest near it is great for storing items you don't want to lug around with you. Near the teleporter is Necromancer Eranith, who will let you summon corpses. Read my basics page on saving and corpses for more info on this.

The Inn is just FULL of people to talk to.
Mida has secrets, including how the map really works.
Cecily is a kid from Windstone
Edalired asks if you're from Aman'lu
Suula doesn't say much
Grizzled bar patron is a captain who wants you to investigate a green stone in the Temple of Xeria in Windstone
Barkeep Dusi won't really talk to prisoners
Innkeeper Leni will increase your party member capability to 3 for a mere 500gp
Lady Levrehh wants to be left alone

To the north is Arcanist Bernard who sells cool reagents for enhancing your weapons and armor. You don't need to worry about that yet. Now you reach the exit door, where Lothar and Deru wait and offer to join you. Right now you can only take 1 person with you - to upgrade to 2 people would cost 500g at the in. I chose Lothar.

Dungeon Siege 2 Walkthrough