PCs speak with Grazz’t at the entrance to the iceberg lair. Grazzt offers protection, etc. PCs blow him off. He shrugs and teleports away.
They enter the caves and a magic mouth gives them a trivia question about Speeceti, which they answer, and it tells them to watch their steps. Squarescales detects magic and find some spots on the ground. The PCs avoid these spots.
They enter a large prison room with two prisoners, a sleeping ogre and a dreadlock guy, who is swaying to some distant music. His name is jerry and he goads the PCs into using up their fire abilities in order to penetrate the ceiling—he claims Muurcaado is there. They breach the ceiling and find only an abandoned trash room.
Squarescales approaches Jerry and he is actually a tentacle sticking through the floor. It attacks. One of the PCs casts a wall of fire on the floor, to create a hole to get through. Muurcaado breaks through the hole first and breathes on the PCs then casts freezing fog on Squarescales and Frengele. She then tries to focus on Hidmiquu, but Hid has Protiase the Dragonbane Gim, and he wounds her badly.
Squarescales dispels the freezing fog and uses a quickened, maximized, fireball, which brings Muurcaado to the brink of death. Hidmiquu finishes her off, but she has an orb phylactery of a dracolich. Protiase tells Hid to destroy the orb before Muurcaado can rise again as a dracolich. Frengele hits the orb with a critical arrow and shatters it.
The soul of Muurcaado, interrupted during the phylactery transfer, goes into Squarescales’ body, giving him an extra level of Dragon Disciple, but cursing him with Muurcaado’s desires.
The PCs have to deal with the musicians in the room, and the treasure.